The Euro may have bottomed on Thursday, May 6, possibly for the short term and probably for the intermediate term.. The Euro rallied on Sunday and now into Monday, May 10 on the EU announcement of of a nearly $1 trillion package to rescue Greece, the EU financial system, and the Euro.
While the EU bailout addresses short term and intermediate term liquidity issues, the intermediate term and long term solvency issues are not resolved until austerity measures have been implemented and succeed.
Reaction in worldwide markets has been positive, including the USA equities markets which should gap up big at the Monday opening.
Below is the EUR/USD currency cross daily chart from the highs of late November/early December 2009 through early Monday, May 10, 2010. As can be seen, the Euro is a long way down from the highs, but has bounced up from the May 6 low.
The Euro 1.30 is a key benchmark and psychological price that must be overcome, but has not at the time of this posting. Once this resistance is broken, an upside breakout should ensue to the 1.32+ area.
More information on the EU announcment is readily available on major news and business website.