Forex: EUR drifts down on return to safe havens 1.4346/47

 @ibtimes
on January 05 2010 7:41 PM

FXstreet.com (London) - Global stock markets continued in a bullish tone today as market players continued establishing new positions, taking equities upwards. In the US the major indices all pushed forward, with S+P and NASDAQ hitting 15 and 16 month highs respectively. Nikkei opened marginally up, gaining 30 bps on last nights close.

In early Asian trading the Dollar was flat across its major pairs today, broad picture looks like this: EUR/USD 1.4418/24 (+0.04%), Swissy 1.0295/96 (-0.03%), Cable 1.6120/25 (+0.23%), USD/JPY 92.41/44 (-0.10%).

EUR/USD has traded south in the previous session and continues in this direction, with Dollar broadly gaining. Euro came off 3 week highs as risk appetite wanes in front of lower pending home sales. Investors will remain very aware of the underlying economic issues highlighted last year by ratings agencies in some of the major Eurozone states.

Valeria Bednarik, collaborator at FXstreet.com guides us on the technicals: Breaking lower pair remains under selling pressure after earlier break and confirmation under 1.4400 zone, base of this week range. Approaching to past Tuesday low and acceleration trough 1.4345 likely to supports further falls during current session.

The pair is down 20 pips from the open and currently trades at 1.4346/47

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