Greek Deal Is Made

As I stated yesterday, a deal was in the works that would finally be unveiled overnight regarding a Greek bailout. I also mentioned “Once the deal gets made public, watch for the more “European” the deal, the better for the euro and the larger the IMF role, the worse it will be.” Well the details that have emerged thus far put the ratio of funding sources at 2/3rd by EU and 1/3rd by IMF. Thus a small rally has ensued today to end the trading week. The mechanism will only be triggered if Greece cannot get market funding by itself which will eventually happen one way or another. An interesting point to mention was the official statement from the IMF where the early headlines make it sound as though they remain on the outside looking in. “The fund stands ready to consider any request for financial assistance from any member country,” it says in a statement via Reuters. Did the Europeans just allot 1/3rd the cost of a bailout of Greece to the IMF with no input from the Fund itself? Some could argue that it appears that way from such a “non committal” statement as that one.

The final unveiling of a bailout plan was good news for the EUR/USD as it rallied towards the formidable area of resistance between 1.3435 and 1.3450 but came up short, stalling at 1.3422. Although the last 24 hours were worth a decent rally, I doubt very highly that such enthusiasm over such a last minute patch work of a plan will carry over into next week.

I will be posting a video of all my trade setups for this week and it will be a good one for you to see how traders setup their next trades and use different timeframes and indicators to make their decisions. Check it out over at Forex-Nation.com!