The EUR/USD was steady around the 1.3170 level at the beginning of this week’s trading.
However, we expect that the Euro will recover especially after the European Commission has agreed temporarily to give a governmental assistance of 3.9 billion euros means 5.1 billion dollars to the third largest Italian banks, “Monte dei Paschi di Siena”.
And as we have mentioned yesterday, the EUR/USD is trying to form a top on the monthly chart, and the prices are trading above the Fibonacci 38.2% means above the 1.3159 level.
We also notice that the ADX indicator reflects the weaknesses of the bearish trend.
So we expect that the Euro will continue its rise against the US Dollar during this week towards the Ichimoku Cloud which corresponds to the Moving 20 of the Bollinger Bands at the 1.3273 level.
Concerning the short term trading, the EUR/USD is trading within a correction channel…
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