Forexpros — The euro was steady against the U.S. dollar on Tuesday, holding onto Monday’s huge gains after a pledge by France and Germany to unveil a plan to contain the debt crisis in the euro zone.
EUR/USD hit 1.3658 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3649, inching up 0.05%.
The pair was likely to find support at 1.3377, Monday’s low and resistance at 1.3797, the high of September 21.
The euro posted the largest one-day gain against the greenback since July 2010 on Monday, boosted by hopes for a comprehensive plan to address the debt crisis in the euro zone.
The proposed plan is believed to contain measures to recapitalize European banks, find a solution to Greece’s ongoing financial crisis and coordinate budget policy between euro zone members.
Later in the day, Slovakia was to be the last country to vote on a bill to expand the powers of the region’s EUR440 billion bailout fund, the European Financial Stability Facility.
The euro was also higher against the pound, with EUR/GBP rising 0.20% to hit 0.8725.
Also Tuesday, European Central Bank President Jean-Claude Trichet was to speak in Brussels.
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