Meanwhile, the EUR/USD has been trading in a narrow range between 1.2950 and 1.2990, come experts have called the situation as 'comatose' euro. But it's true that, if everything remains the same - leaders in Euro dealing with Greece and US policymakers negotiating on fiscal cliff - why the current trend must change? or even how market could expect any definition in pair?
Few signs across the market came from the USD/JPY bullish trend. After rising from 79.20 in the last two weeks to reach the highest level since March at 82.80, the dollar has entered into a consolidation phase against the Yen. Another headline has been the surprising announcement made by the UK Chancellor of the Exchequer George Osborne that designed the current Bank of Canada Governor Mark Carney as the new Bank of England Governor. Despite hawkish Carney supported Pound, the GBP/USD traded sideways between 1.6000/20.
A forgettable Monday
The euro is consolidating last week gains versus the dollar, oscillating just below the 1.3000 level, as eurozone finance ministers meet again to discuss Greek financial situation and possible measures to ease the country’s debt burden.
In this regard, the TD Securities team argues that a positive outcome on the Greece appears almost fully expected, although some lingering doubts could see a minor lift to the EUR and other risk currencies upon confirmation. “If we do not get consensus from that meeting today, we expect a bigger retraction for ‘risk’.”
As for the short term, "Dollar saw a limited slide the last hour, as the White House said Social Security has its will not be part of the fiscal cliff discussions but what’s keeping market frozen is the EU special summit going on in Brussels aimed to decide next tranche of aid for Greece," comments Valeria Bednarik from Fxstreet.com.
From the technical point of view, the "EUR/USD found buyers around 1.2950, 61.8% retracement of the 1.3170/1.2660 rally," adds Bednarik. "As long as the level holds, bulls will keep control of the pair, with a break above 1.3000, past Friday’s high, pointing for an advance towards 1.3040, 78.6% retracement on the same rally."
Main support for the upcoming sessions is the 1.2890/1.2900 static support that limited the downside most of past October, converging now with the 50%