After Greece could sell successfully 4.062 billion Euros of treasuries bills for a month and 3 months T-bills for meeting its close 5 billions euro required to be financed this week, the single currency could have a place for breathing over 1.27 again versus the greenback underpinned for another side by triggered rumors about the possibility of disburse 44 billions euro for Greece by Germany which has not ensured that.

From another side and in the face of the recent market worries about a conflict between IMF and EU, Jean-Claude Junker, President of the Euro group and Prime Minister of Luxembourg could calm down these worries by indicating that there is no conflict between the IMF and EU concerning Greece announcing that he is confident in the IMF role to continued contribution in the aid program of it.

while the expectations of giving it more times to fund its debt on the IMF suggestion are increasing as the market participants have touched in the EU official language a direction of financing Greece by the next 31.5 billion euros tranche of its second bailing out plan next week from the EU official speaking.

The single currency could stand above 1.2661 to reach 1.2727 again during the Asian session which has watched rising of the risk appetite drove the Asian stocks up after dovish US session yesterday.  

By God's will, EURUSD can face now in the case of rising further resisting levels at 1.2789, 1.2875 before facing psychological resistance at 1.30 which can be followed by 1.3082 before its recent formed lower high on 17th of last month at 1.3138 after it failed to break 1.3171 again while retreating back can be met again by 1.2661 which its breaking can open the way for 1.2604 which is forming 50% Fibonacci retracement of the rising from 1.2041 to 1.3170 before 1.2464 again which meets also the 61.8% Fibonacci retracement of this same rising.

While the market attention is expected to be paid to the release of EU industrial productions of September which are expected to decline monthly by 1.9% after rising in August by 0.6% and from US, the market will be waiting for the release of the recent Fed’s meeting minutes after the release of US retail sales of October which are expected to decline by 0.2% monthly after rising by 1.1% in September and also to figure about more about the inflation pressure over the producing level in US , the market will be waiting for Oct PPI which is foreseen to be up by 0.2% after rising in September by 1.1% and excluding the energy and the food,  the figure is expected to show rising by 0.1% after it has been unchanged in September.


Kind Regards

FX Market Strategist

Walid Salah El Din

Mob: +20 12 465 9143


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