Today’s sample of Forex Analysis from

The Euro made a successful test of last week’s low at 1.3584 and finished close to the middle of this week’s range. Early in the session, the EUR USD broke sharply but buyers came in to defend the low. Volatility is expected to continue to be high as traders are reacting to news or the lack of news regarding the possible announcement by the European Union of a plan to support the Greek economy.

The daily chart pattern suggests this market is being wound tightly. The longer it remains in a tight range the stronger the breakout move. A rally through this week’s high at 1.3838 should put this market on path to retrace to at least 1.4079 over the near-term.

Timing the swings of the market has been difficult this week as news has been sporadic. One thing that has been made clear is an agreement between the EU and Greece has been reached. The main issue driving the Dollar and the Euro today is the details of the pact. Some bullish Euro traders apparently were led to believe that a bailout out would take place, but that does not appear to be the case.

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