By Greg Holden
The discussions taking place at the EU Summit in Brussels has taken an interesting turn. News has been leaked that the ministers are discussing the possibilities of implementing a permanent bailout mechanism to help the region avoid future debt crises like those of Greece and Ireland.
The result has been a short-term boost to the EUR against its primary currency rivals.
As we can see from the chart below, the EUR/USD has been range-trading between the 38.2% and 50% Fibonacci levels.
The MACD on the chart below also shows a bullish cross and an ascending price movement, suggesting bullish pressure is building on the pair.
With the EU Summit’s leaked discussions, a potentially positive reading from the German Ifo Business report today at 9:00 GMT, and the technical indicators shown below, all evidence seems to point to an upward price movement.
Traders may want to keep this in mind today as the week comes to a close and look to enter long positions on the euro ahead of these movements.
EUR/USD – Daily Chart
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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