Euro debt deal provides short term relief
Euro political leaders, including German Chancellor Angela Merkel and French President Nicolas Sarkozy, eventually closed the new deal for Greece this Thursday which gives greater controlling power to the European Financial Stability Facility (EFSF). The Euro has benefited, for now, closing nearly 250 pips up on the week at 1.4355.
Dollar looking fragile as deficit talks halted
Ongoing debt issues for the wider European community will doubtless continue but the focus is now on the US Dollar as deficit discussions have halted leaving the world's largest economy nearer to a nightmare default scenario.
Price action has provided a bullish weekly candle but a look at the daily chart shows price failed to increase the gains from Thursday after taking out the previous days swing high.
EUR/USD Support and Resistance
- 1.4450 has a confluence of trend line resistance and horizontal support in the form of this past weeks high.
- 1.4500 is a psychological round number.
- The 1.4200 area is a historical price pivot.
- 1.4000 has previously provided key support.
EURUSD weekly chart