FXstreet.com (San Francisco) - Tuesday saw EUR/USD manage to
break out of its choppy sideways action seen since last week, and
advance into two-month highs in the 1.3270 price zone after news
that the ECB is looking to swap Greek debt with the EFSF.
This move would help reduce Greece's debt burden and, if
implemented, would be seen as another sign of progress. EUR/USD
ended trading in New York at 1.3260 for a gain of 1% on the day.
"After holding the 180pip+ range for the last 12 days, the EURUSD
has finally broken the stalemate," observes Chris Capre of
2ndSkiesForex. "The bulls most likely took out any stops and we
suspect this is a sustained break as a look at the intraday price
action in the chart below suggests price is holding well above the
prior resistance and closing near the highs. This tells us there
was little profit taking so we expect this market to continue
north."
At time of writing, the paring is consolidating just below the
1.3270 area, last at 1.3260, threatening to break into higher
ground. To the upside, resistance is noted at 1.3319 (100-day EMA),
while support is seen at 1.3195 (21 Dec high).