Yes, Greece will default, Ireland is bankrupt.... but I do think the EUR/USD will continue to move higher in the short term due to the following reasons. First, the Euro trade became so one-sided in May that the pair was due for a significant bounce since hitting a bottom at ~1.18. Second, while some countries in the Euro zone are in fact heavily indebted, U.S.' fiscal condition is probably in a worse shape and is currently the most indebted nation in the HISTORY of the world. Third, major economies in Europe such as Germany, driven by exports, are doing relatively better as a result of strong demand from consumers in emerging markets. All these fundamental data points suggest that unless the U.S. starts to tighten its belt or its economy starts to grow at a normal rate again, it might be hard to justify further downside for the Euro in the near term. Technically, the Euro just broke a strong resistance at ~1.3270 today and looks poised to go higher with the next key resistance at 1.35.
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