The markets could turn quickly at even a hint of a resolution. Traders should expect unusual volatility and sudden changes in direction as traders jockey for position ahead of this monumental pact.

A viable agreement is now on the table with Greece , so look for the start of a short-covering rally. This should trigger a massive rise in the Euro. Any hesitation may also encourage hedge funds and bearish traders to add to their massive short-positions.

If the European Union decides to guarantee Greece’s debt then look for trader appetite for risk to skyrocket. This should trigger strong rallies in equities and commodities. The Australian, New Zealand and Canadian Dollars are likely to benefit the most over the short-run.

Although our down targets remain in place we will most likely see a head and shoulders pattern form at the 1.3585 area – should we see the above starting we will look for movements back to the 1.3980.