Forex: EUR/USD unwilling to give up (Buenos Aires) – The EUR/USD soared to 1.3168 this Friday, reaching levels not seen since early May after the US decided to start an open-ended new facility program on Thursday. Having started the day at 1.2987, the dollar sell off has seen no relief since the announcement, and the pair is unwilling to give up recent gains, stalling right below the 78.6% retracement of this year fall at 1.3174.

While the future is far from bright in Europe, this month Central Bank decisions gave another boost to the EUR, that has been slowly but steadily recovering after posting 1.2041 yearly low late July. Just this week, the pair added almost 400 pips. “The pair is extremely overbought yet with no signs of retracements of corrections at the time being” states Valeria Bednarik, chief analyst. “Although more gains are unlikely for today, a break above 1.3180 Fibonacci resistance area, should open doors for a full 100% retracement of this year bearish run, up to 1.3485, this year high.”