As trading volumes are expected to remain light this week the single currency hovers close to two-year lows against the greenback. Political instability in Greece comes to front news again as today Greece faces a vote in parliament later today that will decide whether its leading coalition can get enough votes to elect a president. The Euro could take off of its lows providing ruling coalition’s candidate Stavros Dimas receives 180 votes in parliament to become president as then Greece can continue negotiations with its creditors.
Technically speaking, the last several trading days showed that market participants are happy to sell EURUSD on pullbacks. The momentum of the strong dollar is likely to continue in the last days of the year. As the pair is traded (1.2190) near the resistance at 1.2220, a break could see the pair heading towards 1.24 (H4SMA200). The same resistance can attract sellers and lead the pair falling to 1.2050 to test 2012’s low.