Euro Fails to Attract Much Buying Power

The EUR USD recovered from early selling pressure but still closedlower for the session. Traders were selling the Euro overnight andseeking the safety of the U.S. Dollar after it was reported that NorthKorean tested an underground nuclear bomb and launched two missiles.

The EUR USD recovered from early selling pressure but still closed lower for the session. Traders were selling the Euro overnight and seeking the safety of the U.S. Dollar after it was reported that North Korean tested an underground nuclear bomb and launched two missiles.

Early trading was down as investors waited to see if these events would turn into something prolonged. The uncertainty lasted until the U.S. released its Consumer Confidence report which showed a rise to its highest level in eight months. Investor appetite for risk grew after the release of this bullish number but failed to attract enough buying power to drive it through last week’s high.

Some traders cite the strong rally last week as a reason why the market could not muster enough buying power today. The feeling in the trading community is the market was up too much, too fast. Some feel that bearish data from the Euro Zone is not enough to support prices at such lofty levels.

Technically, the main trend is up with a retracement zone at 1.4184 to 1.4621 the next upside target.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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