The European session saw the Euro rally over 140 pips, from a session open of 1.4139 to peak at 1.4288. The single currency moved in a one way motion throughout the session as it made a failure swing and formed an upside down ‘Head and Shoulders’ Pattern, with the neckline around 1.4235. The EURUSD pair continued in upward movement pushing towards the Fibonacci extension level of 161.8% of today’s earlier session’s downward movement. The sudden reversal in trend is believed to have been brought on by the recent speculation that a second bailout plan for the debt ridden country, Greece, has been agreed upon. The positive European news also saw the Euro rise against the Sterling to reach a peak of 0.8833.
The Sterling dropped against the Euro today as Europe’s two leading economies, France and Germany, pledged to face and solve the recent crisis in Greece, remaining firm on their position to keep unity within the European countries. The view gave a boost to the Euro against the British Pound to see it gain over 45 pips from a level of 0.8786 prior to the news. Against the Dollar, the Sterling pulled back on its losses encountered in the Asian session, and rose some 90 pips to see the GBPUSD pair reach a daily high of 1.6187. Support for the pair is seen at 1.6085, with resistance at the 55-Hourly average of 1.6180.
The CHF once again today flirted with record highs against the Euro as the EURCHF pair dipped to a low of 1.1983 in the wake of the European session. The pair promptly bounced back up, covering all losses experienced thus far in the day as positive news from Europe with regards to a second bailout for Greece helped the Euro recoup some of its recent day’s losses. The Swiss Franc had risen in recent days against the Euro as investors favored the safe haven appeal of the CHF at a time of crisis in Europe.
The Japanese Yen continued declining in today’s European session, as it met resistance around the 61.8% Fibonacci retracement level of its May 31st to June 8th decline. The current level of the USDJPY is around 80.30’s, with support seen around the 80.00 level and further support at 79.67 – the June 8th low.