EUR/USD

Mon, Jun 22 2009, 06:58 GMT
by Carol Harmer


EUR/USD

EURUSD

Eur/Usd tried to trade higher on Friday but captured just above 1.4000 at 1.4010. Now this has come off these highs and currently testing the 50% short term fib level of 1.3870.

If buyers fail to defend this support sellers will take this as a sign of weakness and drive the market lower for 1.3790. Sellers will profit take at these lower levels. Buyers will test the water and only retreat if below 1.3770. Below here sees sellers once more take the market lower for 1.3735.

Now if 1.3870 holds there is scope for this once more to be taken higher by enthusiastic buyers with 1.4000/1.4010 once more targeted. Buyers will cover to here. Sellers will also be around at these highs, and they will only abolish shorts if buyers break 1.4030. Above 1.4030 look for buyers to take this higher with 1.4100/1.4130 then the targeted area.