Forex: EUR's advance continues, 1.4040, fresh 4-month high against USD

Saturday, May 23, 2009

The Euro's climb against the Greenback continues with slow but strong pace. After reaching 1.4030 previous high and falling to 1.3975 in the American session, EUR/USD has resume its up trend and the pair has risen 65 pips to reach a new 4-month high at 1.4040. At the moment, the pair is trading around 0.70% above today's openinig price.

The current week, Euro has won 4.0% against Dollar from 1.3480 Monday opening price to reach 1.4040, 4-month high.

Despite signs advancing a correction lower, the Euro bullish trend is strong enough: "Pair reached 1.4000 and at the time, rebound there yet bullish trend is strong enough for another peak higher. Current candle open under previous doji close, suggesting the beginning of a short downside correction as long as maximum remains unbroken, that could reach the 20 SMA that’s losing steam around 1.3935."

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