The European morning saw EUR/USD bouncing strongly up comments by Roesler, the Federal Minister of Economics and Technology and the Vice Chancellor of Germany, that the country is opposed to a weak euro. Those words gave the common currency enough upward momentum to regain the 1.3320 area and trigger stops, with the pair now heading towards 1.3400 area. A better than expected Spanish bond auction with lower average yields also support the common currency recovery.
The 4 hours chart shows that, after several failure attempts to break lower, price has regained the upside from the 38.2% retracement of its latest bullish run. Technical readings maintain a bullish momentum, favoring an advance towards the 1.3400 price zone, with 1.3350 now being short term support: a break above 1.3410 will open doors for a continuation towards 1.3485, 2012 yearly high.
The downside seems now pretty much contained, by the 23.6% retracement of the same rally at 1.3320, and only below this last, the pair can fall, with the 1.3260 area then at sight.
View Live Chart for EUR/USD
The 4 hours chart shows that, after several failure attempts to break lower, price has regained the upside from the 38.2% retracement of its latest bullish run. Technical readings maintain a bullish momentum, favoring an advance towards the 1.3400 price zone, with 1.3350 now being short term support: a break above 1.3410 will open doors for a continuation towards 1.3485, 2012 yearly high.
The downside seems now pretty much contained, by the 23.6% retracement of the same rally at 1.3320, and only below this last, the pair can fall, with the 1.3260 area then at sight.
View Live Chart for EUR/USD
