There has been no follow-through to the downside in the EUR USD afteryesterday’s closing price reversal top at 1.4290. Technically, thispair could have faced a steep decline if the low at 1.4119 had beenviolated.
There has been no follow-through to the downside in the EUR USD after yesterday’s closing price reversal top at 1.4290. Technically, this pair could have faced a steep decline if the low at 1.4119 had been violated. As it currently stands, the Euro remains in an uptrend but finding trouble pushing through the high for the year at 1.4337.
After sitting in a range of 1.4337 to 1.3748 for almost 60 days, this market seems poised to move to the upside through the high of the year, but it is going to have to take a catalyst to drive it higher. The trigger for the upside pop will be either talk of an interest rate hike by the European Central Bank or an improvement in the Euro Zone economy.
Today’s rally in the Euro is a good indication of just how fast this market can turn to the upside if given good news. Strength developed overnight following the release of a report showing that the Euro Zone economy is stabilizing. Although the news wasn’t strong enough to trigger an upside breakout, traders took it as a sign to remain optimistic about the future of the economy.