Participant

The Euro has been on a strong run over the past 5 to 7 trading sessions against most major currencies. EURUSD has risen from 1.08469 5 days ago to 1.11611 today and against the pound Euro has gone from 0.69497 5 days ago to today’s 0.71699. These are very large advances for a currency that has been hit to constantly new lows over the past year. Yesterday evening Greece sealed a deal for a third bailout and as that has been in the pipeline for a few days now expectations of a deal being reached where probably fueling the Euro’s rise. I think this is a classic example of buy on rumour and sell on fact. On the weekly chart we can see a triangle pattern has formed, this should signal a continuation of the trend. As the fundamentals for the Euro have not changed, low interest rate environment for the medium term, and USD and GBP both look like they will see higher rates before year end, I think the Euro will continue its decline from here and break the triangle on the downside.

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