Euro reached extreme overbought conditions

Thu, Nov 5 2009, 01:51 GMT
http://www.fxstreet.com

FXstreet.com (Buenos Aires) – EUR/USD Current Price: 1.4866. After FED decision to keep rates unchanged and lows for an extended period yet optimistic about economic recovery, stocks run to the upside, taking the pair to the 1.4910 area, where hourly indicators reached extreme overbought conditions.

“Current downside corrective movement remains above key 1.4850 area; with local shares expected to follow Wall Street, and ahead of early Europe ECB and BOE monetary policy, pair likely to remain around current levels,” said Valeria Bednarik, collaborator at FXstreet.com.

Clear break of the mentioned zone, could send the pair to test the 1.4800 area, where 200 EMA and 20 SMA converge to offer support. Another attempt above 1.4900, likely to sent the pair closer to 1.4925 first resistance for today, ahead of stronger 1.4970 area.

Support levels: 1.4850 1.4800 1.4770. Resistance levels: 1.4890 1.4925 1.4970.

EUR/USD

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