Forex: EUR/USD: Euro rises to tests 1.4900

Thu, Nov 5 2009, 16:25 GMT
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FXstreet.com (Córdoba) – EUR/USD found support at 1.4860 and rose to test the 1.4900 zone but failed to break above. The Euro is gaining momentum as stocks in the U.S. are posting important gains.

During the European session the pair peaked at 1.4920, posting a fresh one-week high. To the upside, the next resistance lies at 1.4925 (Oct 27 highs). The Dow Jones is rising 1.75% and is getting closer to regain the 10,000 area.

Andrew Wilkinson, analyst at Interactive Brokers, affirms: “After today’s ECB press conference its president, Jean Claude Trichet tossed the challenge of a vulnerable dollar back into the court of the U.S. treasury when he stated that a strong dollar was in the interests of United States. Such sledgehammer diplomacy is unlikely to provoke the U.S. into intervention mode in what has been a rather orderly decline of the greenback. “

EUR/USD

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