Greece deal could be done before Sunday

A latest proposal by Greece seems to have improved the mood among Euro zone creditors.

French president Francois Hollande, who have been trying hard to secure a deal said that the reforms submitted by Athens remain credible and serious. He went further to say that Greeks have shown determination to stay within Euro zone.

According to a senior EU official, a deal could be done by Saturday and there would be no need for a European leaders' summit on Sunday.

Euro moved up in cheers, trading at 1.116 against dollar. Traded as high as 1.118 so far. Further rise is likely.

As of now, it seems conceivable that TROIKA will accept the proposal of reforms and push the ball on Finance Ministers' court on Sunday for final approval.

Though the deal seems convincing enough, market participants should remain cautious as history tells us that there has been no end to surprises in this Greek crisis.

Trade idea -

• Euro is likely to open gap up if a deal is secured by weekend. However a move to further highs remain limited.
• Euro is likely to face resistance around 1.132-1.135 area. Area around 1.125 also remains as significant resistance.