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German chancellor Angela Merkel and French president Nicolas Sarkozy are meeting to discuss the situation in Greece and might come to some compromise regarding the participation of the private sector. The euro is currently rising on hope for some kind of solution.

A positive statement can boost the euro and provide a better ending after this week’s avalanche. The leaders of the two largest and most powerful countries in the Euro-zone are set to hold a press conference at 10:45 GMT, during the European session and well before the US session. The markets will have enough time to digest their words and react before they close.

A failure to provide hope can send the euro much lower. EUR/USD is currently trading at 1.4170, above the pivotal line of 1.4160. Lower support is at 1.4030 and 1.3950. Resistance is at 1.4220 and 1.4282.

For more about EUR/USD, see the euro to dollar forecast.

In the meantime, the Greek prime minister presented the new cabinet, including a new finance minister,  Evangelos Venizelos. I guess nobody envies him…