The Euro rallied against the U.S dollar after covering the huge gap caused over the weekend by the ongoing Greece crisis in the Europe zone.
The euro rose against the dollar and the yen on Friday amid renewed hopes for a deal on a bailout for Greece that would prevent a possible exit from the single currency bloc.
Hopes for a breakthrough on a new bailout deal for Greece were boosted after the government put forward new proposals on budget cuts and economic reforms ahead of a meeting of the euro group of finance ministers on Saturday.
Meanwhile, the single currency pared back gains after Federal Reserve Chair Janet Yellen said the central bank was on track to raise interest rates at some point this year.
She added that she felt an initial rate hike will have a small impact and reiterated that rates would rise only gradually.
EUR/USD rebounded strongly after dipping to 1.0915 and fall from 1.1436 should be finished. The development also suggests that price actions from 1.1466 are merely a consolidation pattern and has completed with three waves to 1.0915. Initial bias is mildly on the upside for 1.1436/66 resistance zone this week. Break will resume whole rise from 1.0461 to 38.2% retracement of 1.3993 to 1.0461 at 1.1810. On the downside, below 1.0915 will turn bias back to the downside for 1.0818 support instead.
In the week ahead, developments in Greece look likely to continue to dominate sentiment after talks between euro zone finance ministers on a third bailout for Greece ended without an agreement on Saturday.
China is to release data on second quarter growth, while monetary policy statements by the European Central Bank and central banks in Japan and Canada will also be in focus. New Zealand is also to publish CPI data while the U.S is to publish data on Retail Sales.