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Forex: EUR/USD rejects 1.4000 and falls to 1.3950

Thu, Jun 18 2009, 15:01 GMT
http://www.fxstreet.com

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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Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

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