The euro hit a high of $1.2833 against the dollar, holding its ground during Asian trade as debt sales in Spain and Italy drew solid demand, raising expectations that an auction of longer-dated Italian bonds later on in the day will also do well. Italy’s will auction longer term bonds of 4.75 billion euros. Trades will be also looking to see the ongoing negotiations between Greece and its private sector bondholders on its debt swap deal. Greece will need to pick up speed if it is to avoid bankruptcy and secure another international bailout deal.
EURJPY
Strong rally is star starting to fade downside pressure and it is starting to help revive a corrective upward move. We will most likely see a sustained move if the pair is able to penetrate above 98.53. Resistance levels seen at 98.95 and 100.35 while support is at 98.14.
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