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–Euro/dollar had a positive week, riding on the determination of the ECB in using its firepower to counter the Spanish crisis.
–The upcoming week is even more important, with the German constitutional court’s ruling needed to enable the bailouts.
–There are quite a few additional regular indicators and special events.
–Will the rally continue?.
–I am neutral on EUR/USD.
–After the huge rally that sent the pair to the highest levels since May, there is room for some correction.
–The rise came on a better than expected ECB decision, and high hopes for QE3 in the US.
–These hopes could lead to a disappointment, countering the big steps that Europe is taking to counter the crisis.
–Written by Forexcrunch.
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