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welcome to another round of the EUR/USD Weekly Review.
I mentioned last week that we may see further consolidations due to the important news stacked throughout the week.
And it did. Reaching the heights of 1.5060+, it bounced off sharply towards the end of the week, ending at the important line of 1.4920.
The flavor of the week was the string of pro US Dollar comments made by several minsters from various countries. U.S. Treasury Secretary Timothy Geithner said himself that “It’s veryimportant to the United States that we have a strong dollar.”
While most of the market have already grew accustomed to the occasional”noise”, the sudden renewal of pro US Dollar comments and the choice of words used may cause some sentiments to flip.
On the news front, we have several important economic releases in the coming week, including the US Retail Sales. Traders will probably speculate on both sides of the fence.
On the technical front, we remain bounded by the bullish trendline from March 09 and the current strong resistance of 1.5065+.
Fundamentally, the US economy remains fragile and will probably be for sometime. Currency movements will probably be a balance between the demand for higher yields and risk aversion.
The coming week may bring us more consolidation with a possible bias towards the upside. Monitor closely for more comments made by government ministers over the weekend andthe week and the effect on the equities market and eventually the currencies. Note the boundaries set by the current technical lines and possible attempts to breech them.
Trade safe and all the best.
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