EUR/USD forex technical analysis round-up: Jul. 22

ForexNewsNow | Published on July 22, 2011 at 12:23 pm

The euro was slightly decreasing in value against the US dollar today, trading at 1.4356 as of around 4:20 P.M., GMT.

The EU’s single currency is down 0.465% on the day and has reached a session high of 1.4438 with a low of 1.4324 so far.

The euro was stabilizing against the dollar, after having rebounded sharply yesterday in the wake of an agreement between euro zone leaders endorsing a massive new aid plan for Greece aimed at preventing a spread of the sovereign debt crisis.

The euro touched 1.4439 on Thursday, its highest level since July 6th.

Kathleen Brooks, an analyst at Forex.com, commented that the move “shows that leaders have finally taken into account the seriousness of the crisis and have come together to find a common solution… Better late than never.”

The second Greek aid plan totals around 160 billion euros, an amount much higher than expected, and includes funds contributed by private creditors, contrary to the previous plan.

This is what the analysts had to say about the EUR/USD currency pair in the near-term:

– “The market reflects the continuing uncertainty over the implementation of the agreement, and whether the EFSF has enough ammunition to deal with its myriad of responsibilities in fragile countries in the euro zone,” noted Daragh Maher, an analyst at Crédit Agricole-CIB.

– “Maintaining the EFSF at its present size limits its ability to act. After a brief respite, difficulties in euro zone peripheral states could soon come back to haunt the single currency,” concluded Valentin Marinov, an analyst CitiFX home.

 

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