By God's will, the single currency is waiting now for what the EU Fin Min Meeting in Copenhagen can end to today while the speculations are increasing for emerging the current EFSF plan and the ESM which is awaited to work in the middle of this year as there can be put together in one package containing the 240b euros which is the lending capacity of the EFSF and the 500b which is the current planed value of the ESM.
This request has been highlighted also by the IMF managing director legarde but there was opposing from Merkel who looked much more convincible recently for adding more efforts for getting over the debt crisis even by enlarging the current bailing out plan as it has been asked by US, Japan and China in the recent G20 meeting for giving the IMF the role their supporting in the face of the crisis and current global economic slow down.
While the greenback is still suffering from the persisting conservative position of the Fed's Chief Bernenke toward removing the current accommodative easing policy worrying about the employment sector performance downplaying the inflation upside risks which can result from the current rising of the energy prices over the medium term.
The data from Europe has shown today that the Germane retail sales of February have rose by 1.7% monthly like what it has don in January while they were expected to rise by just 0.1% but EURUSD is still facing hardness to get over 1.34 and God willing, in the case of getting over it the pair can face another resistance at 1.3489 whereas it has formed its recent top which dragged the pair to 1.3003 and in the case of breaking 1.3489 the pair can meet other resisting levels at 1.3546, 1.3613, 1.3808 before 1.387 which is still unbreakable since the end of last October and after several tries to break it in last November while getting down from here can face supporting level again at 1.3251 which was this week low and breaking it can be followed by other supporting levels at 1.3133, 1.3048, 1.3003, 1.2973. 1.2930, 1.2874 before 1.2631 which was the pair formed bottom on 13th of last January to these current levels.
FX Market Strategist
Walid Salah El Din