Forex: EUR/USD: Euro fails to break above 1.4700 and falls to 1.4630

Tue, Nov 3 2009, 16:50 GMT
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FXstreet.com (Córdoba) - The Euro weakened against the Dollar in the last hours helped by an increase in risk aversion that is sending stocks lower and gold to new record highs. EUR/USD failed to break above 1.4700 and fell 1.4630. The pair is approaching to intra-day lows that lie at 1.4624.

If it falls further the next support lies at 1.4600 and below at 1.4570. Currently the pair trades at the lowest level in four weeks at 1.4630/34, 0.95% below today’s opening.

James Chen, technical analyst at FX Solutions, affirms: “EUR/USD, a daily chart of which is shown, has finally made a tentative breakdown below the key uptrend support line extending from the March lows. While this downside breach is significant and raises important questions as to the future direction of this pair, the prevailing uptrend is still technically considered to be intact. Today’s breach represents a weakening of conviction on the part of the EUR/USD bulls (dollar bears), and suggests indecision in the market and a potential continued consolidation. Any continued bearishness on today’s tentative breakdown should target strong support in the 1.4450 price region.”

EUR/USD

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