Exchange traded funds tracking the euro rose Wednesday as the dollar weakened against the common currency before a key meeting of European Union leaders on a new bailout package for Greece.
CurrencyShares Euro Trust (NYSEArca: FXE) gained 0.6% in afternoon trading. Investors are hoping EU officials can reach a deal that will stem the debt crisis as government bond yields rise near critical levels in Italy.
Dollar and euro ETFs have traded in a volatile range lately with currency markets looking for clarity in Europe and on the U.S. debt ceiling. Stock have also bounced within a range this year. [Euro ETFs See Bearish Break from ‘Flag’ Pattern]
“CurrencyShares Euro Trust is attempting to reinstate the triangle continuation pattern which appeared to dissolve on July 11. Triangles are notorious for false breakouts. Should trading close back above $142 a share, then the triangle will be back in play,” said Tarquin Coe, Investors Intelligence technical analyst.