Forex: EUR/USD rises above 1.4830 after testing 1.4800

Fri, Nov 20 2009, 13:54 GMT
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FXstreet.com (Córdoba) – EUR/USD fell to 1.4799 posting the lowest price in two weeks. From there the pair rebounded and rose above 1.4830 to 1.4840. Between 1.4840 and 1.4850 the Euro could face resistance on its way to recover further. 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).

Currently trades at 1.4833/36, 0.60% below today’s opening price. The pair is falling for the second day in a row and is heading toward the first weekly decline for the month of November.

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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