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Forex: EUR/USD: Euro bounces at 1.3975 to test 1.4050

Thu, Jun 11 2009, 09:32 GMT
http://www.fxstreet.com

FXstreet.com (Barcelona) - The Euro has gathered strength after ECB's Monthly Economic Buklletin, and the pair has bounced at levels around 1.3975 to attempt another test to 1.4050 resistance level.

In case of breaking above 1.4050, next resistance level might come at 1.4090 and then 1.4145 (Jun 9 high). On the dwnside, support levels lie at 1.3965/75 intra-day low and below there, 1.3915 (Jun 910 low) and 1.3900.

According to Rajoo C, technical analyst at Precise Trader, Euro rally woiuld not reach much higher than 1.4100: "We believe the price might have some pullback after previous day drop. The patterns are not clear but suggesting that bears must ensure that the price should not go above 14110-14140 level and 13955 must give way for lower lows. We prefer to Short Cautiously if 14110 is seen or strictly trade only at our levels."

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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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