Gloves Are Off- Euro Ready To Rumble

Forex traders need to be at the work station 17:00 ET on Sunday, in anticipation the European Union agreement to create an emergency fund that will be charged with halting the risk of debt contagion and Euro weakness spreading further than it has already done so.

Leaders of the 16 euro countries said the workings of the financial backstop will be hammered out before Asian markets open late tomorrow European time.

European officials declined to disclose the size of the stabilization fund, to be made up of money borrowed by European Union central authorities with guarantees by national governments. Finance ministers will meet at 15:00 ET on Sunday in Brussels to finalize the details. A press briefing is scheduled for 18:00 ET.

Eur/Usd signaled long on the 1-Hour chart, but did so right at the close of trade on Friday, and we are looking closely at moves from 1.2750 towards 1.2950 initially.

How much of a gap is seen at the start is the unknown, but if the fundament announcement soothes invest worries, the long side of Eur, Gbp, Aud, may be seen. Right now, there is a mile of upside room to regain if global equity markets hold support.

The trade team will be posting signals at the get-go on Sunday, and see this as a hugely important swing point in momentum that could reverse a lot of Eur weakness if European equity markets can halt the selling on the strength of the news.

For more info on SoftroomFX recommended broker, go to http://www.fxprimus.com

For more info on SoftroomFX recommended Forex Forum, go to sgforexnow.freeforums.org/