FXstreet.com (Barcelona) - The EUR/USD is moving back above 1,3000 after a six hours rally that bring the pair to won more than 200 pips, from 1,2874 to 1,3093, stopping just before 1.3100. Kathy Lien, director of currency research, GFT. says that the price action in the EUR/USD is very similar to the price action that marked previous tops and bottoms.
After hitting a low of 1.2329 in October, the EUR/USD surged to 1.4719 before giving back 84 percent of its gains. The currency pair is once again attempting to base and if the EUR/USD behaves just like it has in previous tops and bottoms, technicals argue that this could be the beginning of a long term bottom. Fundamentally, if investors react positively to the Obama Administration's Financial Rescue Plan and Economic Stimulus Package, improving risk appetite could drive the EUR/USD higher. Concluded Kathy Lien.