Forex: EUR/USD finds resistance at 1.4860, back to 1.4820

Fri, Nov 20 2009, 15:47 GMT
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FXstreet.com (Barcelona) – The Euro has found a resistance at 1.4860 in its recovery from 2-week low at 1.4799 against the Greenback. Currently the EUR/USD is trading at 1.4840/50, 0.55% below today's opening price action.

EUR/USD fell to 1.4799 posting the lowest price in two weeks after declining around 135 during the European session. Now testing 1.4860, if it breaks above the next resistance levels lie at 1.4480 and above here, 1.4935 (intra-day high). In case of breaking below 1.4805/00 area, next support levels could be 1.4785 (61.8% Fib retracement of the Nov 3-11 rally) and 1.4700 (Nov 4 low).

Andrew Wilkinson, analyst at Interactive Brokers, affirms: “The ECB’s omnipresent desire to avoid the pitfalls of inflation caused by excessive money growth caused its president, Jean Claude Trichet to serve up a warning earlier this morning that it must pursue an exit strategy. His words, while not exactly new, turned a mediocre equity market recovery on its head and have caused a surge in the value of the dollar at the prospect of a further amelioration of growth. The euro tumbled half a penny to $1.4808 while dollar gains are evident across the board.”

EUR/USD

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