Investing.com - The euro extended gains against the U.S. dollar on Tuesday, rising to a four-day high on the back of fresh hopes that an agreement on a second bailout for Greece could be close.
EUR/USD hit 1.3212 during U.S. morning trade, the pair’s highest since February 2; the pair subsequently consolidated at 1.3202, gaining 0.56%.
The pair was likely to find support at 1.3027, Monday’ slow and resistance at 1.3232, the high of January 27 and a five-week high.
The euro was boosted by reports that Greek government officials were putting together the final draft of a bailout agreement ahead of meeting between Greek Prime Minister Lucas Papademos and coalition leaders later in the day.
Greece needs to reach a consensus on the terms of the bailout in order to secure the rescue package and avert a default when a EUR14.5 billion bond repayment comes due on March 20.
Eurogroup President Jean-Claude Juncker said earlier that he was confident Greece would remain in the single currency bloc, provided that the country fulfilled its obligations to other bloc members.
The euro came under pressure earlier Tuesday after official data showed that German industrial output dropped by 2.9% in December, disappointing expectations for a modest 0.1% decline.
The euro was also higher against the pound, with EUR/GBP advancing 0.61% to hit 0.8346.
Elsewhere Tuesday, Federal Reserve Chairman Ben Bernanke was testifying on the economic outlook and federal budget situation before the Senate Budget Committee in Washington.
EUR/USD hit 1.3212 during U.S. morning trade, the pair’s highest since February 2; the pair subsequently consolidated at 1.3202, gaining 0.56%.
The pair was likely to find support at 1.3027, Monday’ slow and resistance at 1.3232, the high of January 27 and a five-week high.
The euro was boosted by reports that Greek government officials were putting together the final draft of a bailout agreement ahead of meeting between Greek Prime Minister Lucas Papademos and coalition leaders later in the day.
Greece needs to reach a consensus on the terms of the bailout in order to secure the rescue package and avert a default when a EUR14.5 billion bond repayment comes due on March 20.
Eurogroup President Jean-Claude Juncker said earlier that he was confident Greece would remain in the single currency bloc, provided that the country fulfilled its obligations to other bloc members.
The euro came under pressure earlier Tuesday after official data showed that German industrial output dropped by 2.9% in December, disappointing expectations for a modest 0.1% decline.
The euro was also higher against the pound, with EUR/GBP advancing 0.61% to hit 0.8346.
Elsewhere Tuesday, Federal Reserve Chairman Ben Bernanke was testifying on the economic outlook and federal budget situation before the Senate Budget Committee in Washington.