EUR/USD rises on fresh optimism for a Greek deal –

2

French Prime Minister Manuel Valls says that a deal is within reach and that the basics of a deal have already been laid out.  This follows earlier comments about debt restructuring not being taboo, something shared with the US opinion.

EUR/USD reacted positively, reaching a new daily high of 1.1091. So, markets do express some hope. Breakout or fakeout?

He added that it is vital for Greece to stay in the euro-zone and failure to do so would have geopolitical and economical consequences for the world.

But as we have had so many failed breakthroughs in the past, this may be another one. This is especially true if we remember what Italy’s PM said. Renzi said yesterday that a deal is a matter of hours. Too many hours have passed by and there is no deal yet. So is it as sell opportunity?

To pour more cold water, we haven’t heard yet from Germany. In the past, a positive attitude from France was met with yet another hard line from Germany, and the Germans have the last word.

But with pressure mounting for a deal, Germany may eventually accept debt restructuring, as a loss cutting measure.

Earlier, Greece submitted a 3 year ESM bailout plan. Yet details will awaits for tomorrow.

Here is how the swing looks in the chart. Further resistance awaits at 1.1120. 1.1050 is now weak support.

Valls optimism boosts EURUSD July 8 2015 technical euro dollar chart

Get the 5 most predictable currency pairs

About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

2 Comments

  1. Beach Bum on

    Yohay, I appreciate your daily insight into the Forex Market. Forex Crunch is one of the first Emails I open each day. Again, THANKS!