By Yan Petters – Are we on the verge of a new trend in the market? For the past 5 months, traders that went short on the Euro saw high profits. On these 5 months the EUR/USD pair dropped close to 2,000 pips! Furthermore, due to the Greek debt crisis it seems that this trend is likely to proceed as the Euro-Zone leadership seemed reluctant to aid the Greek economy. However, as the European governments have offered a $61 Billion rescue plan for Greece, the EUR/USD pair has gained over 300 pips since Friday. Currently it seems that the critical level is at 1.3820. If the pair will manage to breach through this level, we might actually see the beginning of a long-lasting bullish correction.
As for now, traders should first and foremost look for any update regarding the Greek bailout package. This is the most significant issue at the moment, and every data regards it is likely to have an immediate impact on the market.
In addition, here are today leading publications that could influence the market:
• 12:15 GMT, Canadian Housing Starts – This indicator measures the number of new residential buildings that began construction during March. Analysts have forecasted that 201,000 buildings have begun construction during March. This could mark the best result since November 2008, and if the end result will be similar it is likely to support the CAD.
• 18:00 GMT, U.S. Federal Budget Balance – This report measures the difference between the federal government’s income and spending during March. If the actual result will be better than expected (-101.0B), then the USD is likely to rise as a result.