The Euro rose to 1 2 month high above 1.37 Tuesday, and looked set to extend gains as momentum turned Bullish after the currency's recent break above Key chart marks.
Looking at the technical factors, which are important in the near term, there is room for a retest of previous highs just at 1.38, as EU policy makers will do what it takes to contain the debt crisis in the coming month leaving the Greenback vulnerable against the Euro as long as the Fed continues its Treasury purchases according to its QE-2 program.
The Euro's rise in late New York trade Tuesday extended a 6 day rally against the USD. Players said the Euro's solid break above 1.35 last week was significant and suggested a run toward 1.3786, the November 22 high and higher.
In late trading, the euro rose 0.4% to 1.3695, after having earlier risen as high 1.3705 on trading platform EBS.
The EuroZones single currency has gained about 6.5% since hitting a low of 1.2860 on January 10.
Chart from HCM Pro Trader
Near-term resistance is 1.3738, the 61.8% Fibo retracement of the fall that began in early November and ended 2 weeks ago. A break above that mark adds to the Bullish momentum.-Paul A. Ebeling, Jnr. www.livetradingnews.com