Something that bugged me about last weeks run up in the EURUSD was the fact that we all knew that even this weekend's agreement is not a real agreement because while German prime minister says she will put her full support behind it, it will be a challenge as she takes it back to her parliment to be voted on. She will be doing this on Friday. I guess instead of it having the big gap like last time when the first EU and IMF agreement was made on the Sunday; they ran it up last week and today should have a smaller gap.
If history repeats itself then we should have a selloff as the agreement is just like the previous agreement. Germany is still not in. The prime minister has to take it back to parliment and have it voted on and then there are a bunch of German professors threatening to file law suite if it goes through.
So there is still uncertainty about the whole deal that should prevent the EURUSD from rallying a whole lot and a selloff of any rally.
So depending on how her presentation to parliment seems we will know if it's a big rally or big sell off.
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