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Euro Reverses Up after Testing 1.2164 Retracement Level

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Jun 15, 2010.

  1. forextrends24

    forextrends24 New Member

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    Today’s sample of Forex Analysis from ForexHound.com

    The Euro is rallying this morning after testing the 50% level at 1.2164 overnight. The actual low of the break from Monday’s high was 1.2167. The ability to recover after early session weakness is a sign that investors are shrugging off yesterday’s news that Moody’s downgraded Greece’s debt. The strong turnaround has put the market in a position to take out yesterday’s high at 1.2297. The main trend on the daily chart will remain down, however, until the May 28th top at 1.2453 is violated.

    The Euro surged early in the session on Monday as upbeat feelings about the global recovery helped drive up demand for higher risk assets. Yesterday’s strong rally was a continuation of last week’s bottoming action which was triggered by positive comments from Fed Chairman Ben Bernanke and European Central Bank President Jean Claude Trichet.

    Bernanke told the Senate last week that he believed that Europe has the money to protect its currency from collapse. The market rallied on his comment because it meant that Europe would use all means to prevent sovereign debt issues from escalating. Trichet said the ECB would not increase stimulus in the economy. This meant the economy was strong enough to not require any additional aid from the central bank. Both comments were supportive to the Euro.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

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