Forex News – 11th July 2011

EUR

European leaders are due to meet today, with rumors Athens should default on some of its bonds
as part of a new bail-out plan for Greece that would put the country’s overall debt levels on a sustainable footing.

The financial times also suggests a possible abandonment of a French-backed plan for banks to
roll-over their Greek debt. The Emergency meeting is the main focus for today.

The market reacted to these news by heavily selling EUR/USD, forcing it under $1.4200 to a daily low
of $1.4179.

GOLD

Such instability, especially around Italy as the ECB is now calling for a larger Euro-zone rescue funds
(Die Welt newspaper) is Causing Gold to rise. XAU/USD is currently trading at $1,545.95 and has
gained +$2.40 at the time of this writing.

Analysts believe there is a high chance of the yellow metal to retest its all-time high as concerns mount
over The Italian debt.

Technical Observation, USDJPY

A signal to buy to was given when the bullish engulfing formed at Y80.52 level. Since then the pair
has been on the rise, taking out the 23.60% (Y80.71), heading towards 50% level at Y80.97.

USD/JPY is now facing a tough resistance from 300MA. A failure to close above will lead to a
retracement in the pair, with a possible retracement back towards the support at Y80.52

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