Euro surges on the developments of Greek deal

By TraderVox.com

It was an important day for GBP as Bank of England was to decide two important matter- interest rate and quantitative easing. The interest rate was kept unchanged at 0.5%. There were rumors of pumping in more money than expected 50 billion pounds. Bank of England introduced only 50 billion pound so the market reacted positively and pound rose to high of the day at 1.5885. It has since retraced those gains and is currently trading at 1.5858, up about a quarter of percentage. Now the support lies at 1.5850 and below 1.5820. The resistance may be seen at 1.5900.

Some positive developments were also seen for Euro as well. ECB kept the interest rate unchanged at 1%. Some reports of clinching Greek deal by Greek politicians propelled Euro break the 1.3300 levels within minutes. It formed a high of 1.3320, level last seen almost 2 months back. It is currently trading at 1.3285, up about 0.20%. The support now may be found at 1.3260 and 1.3220. The resistance will be seen at 1.3300 and 1.3330.

Australian dollar hit many times to an important psychological level of 1.0800. But after hitting a high of 1.0825, it failed to hold the levels. The support is at 1.0870 and 1.0730. The resistance may be seen at 1.0800 and at 1.0830.

The USD/CHF pair has come closer to 0.9100 levels again during the US session. The risk appetite has forced the pair lower. The support may be seen at 0.9070 and 0.9050. The resistance may be seen at 0.9120 and 0.9150.

An exception to US dollar weakening move is USD/JPY pair. It is taken out the previous high of the day and formed a new high of 77.46. It is currently trading near the high at 77.42, up about half a percentage. The support may be seen at 77.25 and below at 77/77.10. The resistance may be seen at 77.50 and 77.70.

The dollar index is trading at 78.54. The US dollar is clearly under the pressure as the Greek deal seems to be a reality now. An official announced on the deal may push the Euro higher towards 1.3400 levels.

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