Forex: EUR/USD rejects 1.4000 and falls to 1.3950
Thu, Jun 18 2009, 15:01 GMT
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FXstreet.com (Barcelona) - The Euro's spike against the Greenback on better than expected Philadelphia Fed Business Index has found resistance at 1.4000 level and the pair has been launched down to test the 1.3950 support (MA-200 level in hourly chart). Currently the pair is trading around 1.3955/65, losing its profit and going 0.10% below today's opening price.
According to the Erste Bank Bond Research Team, EUR/USD is inside of correction movement: "At the beginning of the month, EURUSD reached a temporary high at 1.43. Since then, the euro has weakened vs. the dollar. In our view, this was above all a technical movement. After gains of 10% of the euro vs. the dollar since mid-April, a consolidation was to be expected, triggered by profit-taking of market participants."

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