The Euro rose across the board on Friday helped by its leaders' positive response to creating a facility to safeguard its nations from debt issues like Ireland's, but a rating downgrade by Moody's on the troubled country dampened the sentiment, limiting gains by the single currency.
EUR/USD on 1-hour chart that broke sideways off an uptrend is now trying to make a comeback but is testing stiff resistance just under the 61.8 percent Fibonacci retracement from 1.3497 to 1.3181.
Mapping the AB swing as CD, you can expect the pair hitting 1.3497 in next week or so, but in the near-term, one should also respect the RSI that suggests the pair as overbought and expect a pull back near 1.326, which is the 23.6 Fibonacci of B to C and the 50-period SMA.
The financial safety net European Union leaders have agreed to create is not happening before 2013 while the European Central Bank said Thursday that it would nearly double its capital to 10.76 billion euros to face with the current crisis, adding that the increase will be contributed by the Euro zone members.
At 11:11 GMT, EUR/USD was at1.3312, from previous close of 1.3242. Against the sterling, the single currency rose as high as 0.8552, a near-four-week high, and from Thursday's close of 0.8468.
EUR/JPY jumped to 111.93 from 111.24 while EUR/CAD rose to 1.3444 from 1.3320 on Thursday.