Quote of the day: A collapse in U.S. stock prices certainly would cause a lot of white knuckles on Wall Street. But what effect would it have on the broader U.S. economy? If Wall Street crashes, does Main Street follow? Not necessarily. - Ben Bernanke

EURUSD

The euro trades higher today, recovering after Friday's dip, testing the downward trend line from 1.5045 which comes around 1.4950. The short-term charts show prolonged indecision as this range of 1.4820/50-1.5 has been valid for the last two weeks. It is not easy to advance higher above 1.5 but the dollar bulls are facing difficulties too - the 1.4820/50 region being a stable bottom which held on several attempts. Will 1.4950 breach? Forming support above 1.4950 would definitely help providing a fresh bottom from where to initiate rallies towards 1.5050, as those emerging from 1.4880/00 became exhausted too early. Intra-day sentiment is positive and won't switch into the bearish territory as long as 1.4850 holds. Short-term momentum is neutral due to the ongoing consolidation but a potential daily close above 1.4950 would provide a key bullish confirmation. Upside is likely to remain favored for now. Current quote is 1.4928 @07:00 GMT

Support: 1.4900, 1.4850, 1.4800/20
Resistance: 1.4950, 1.5000/15, 1.5050/60 and 1.5100/15

EURUSD

EURUSD 4hrs chart 11-23-2009