The EUR/USD pair had a strong showing on Friday, slamming into the 1.30 level. The real question is what happens when we open up on Monday, as the Cypriot Parliament has voted into law several steps that make accepting the IMF/EU bailout package much easier. This all happened after the market close on Friday, so we have yet to see the reaction. One would have to think that it’s positive for the Euro, so a gap higher on Monday is very likely. The real question is whether or not we can completely fill the gap and move higher. Our suspicion is that the rally will be one that can be faded though, as the Italian situation has not changed one iota.
Written by FX Empire