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Forex: EUR/USD rejects 1.3900 and falls to 1.3850

Mon, Jun 22 2009, 15:49 GMT
http://www.fxstreet.com

FXstreet.com (Barcelona) - After rising around 70 pips from 1.3830 to test the 1.3900 resistance in the last hour, EUR/USD has been rejected by 1.3902 to levels below 1.3850. Currently the pair is trading around 0.70% from opening price to the current 1.3845/55.


James Chen, FX Solutions's analyst, comments
: "Price action on GBP/USD is currently entrenched in both a well-defined uptrend as well as a mature triangle formation. The uptrend is an accelerated one that began to get steeper in May, and has since been respected by at least four price touches. The triangle has three touches to the upside and two to the downside, and is quickly approaching the triangle apex."

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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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