Forex: EUR/USD tests today's high

Saturday, May 23, 2009

After rejecting from 1.4030, fresh 4-month high, to fall to 1.3975, EUR/USD has begun to rise above the 1.4000 field and it is testing today's high. Currently the pair is trading around 1.4005/15 after reaching 1.4025.

The Euro has been rallying continuously for the whole week and from 1.3425 low on Monday EUR/USD has reached a 4 month high at 1.4030 ahead of Friday's U.S. session opening.

Affirms that, 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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