EUR/USD: Testing Highest Level In Months - Wednesday, July 15

The $750 billion grant and loan package is a major factor in recent improving sentiment towards the Euro, but it must get the unanimous approval of all members along with the budget for the next seven years. Analysts are concerned that objections from the Netherlands, Denmark, Sweden, and Austria to a $500 billion tranche financed by grants can dramatically reduce its size or turn them into a program that is heavily dependent on debt.

As I mentioned earlier, the success of EUR/USD in overcoming the resistance barrier at 1.1425 will be a catalyst for a bullish correction, and the current closest resistance levels that support stronger bulls control are 1.1495, 1.1550, and 1.1635, respectively, and the last level will be a coronation of the trend reversal.

 If the European summit fails to pass the expected agreement, the Euro may collapse quickly and it may return to the periphery of the 1.1100 support quickly. One must be cautious about trading the Euro until knowing what the important European summit will bring out this week. From the United States, the Empire State Index and the industrial production rate will be announced. There are no significant economic releases from the Eurozone.



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