FXstreet.com (Barcelona) - Euro pares its losses against the Greenback on the back of the Jean Claude Trichet comments from 1.4800 to find support at 1.4720, MA55 hourly chart level, and bounce to levels above 1.4800. Currently the pair is trading in its highest levels in the last 2 weeks, around 1.4805/15, 0.85% above today's opening price action at 1.4688.
According to Andrew Wilkinson, analyst at Interactive Brokers, Dollar continues to decline as gold makes fresh record highs: The dollar index continued to feel the pressure from all sides late in the week as investors pay more attention to the almost daily records being set by the price of gold and as commodity producer steal the limelight after Alcoa's earnings were in the black. Investors felt warmer waters around their feet as stock index futures were buoyed by earnings, European bankers' decisions to maintain low rates and a healthier showing for the American jobs market. The euro strengthened to $1.4745 as it creeps towards $1.50, while the Australian dollar saw a fresh wave of buying after the labor market shocked investors with an increase in employment.
The FastBrokers Research Team comments: If the EUR/USD can climb past our 3rd tier we believe September highs will be the next to go. Such a movement could spur a nice near-term run in the EUR/USD towards the highly psychological 1.50 level. As for the downside, the currency pair's recent strength creates several technical cushions, including multiple uptrend lines along with 10/7 and 9/29 lows. The breakout in gold and the AUD/USD along with the S&P futures trading near 2009 highs create an optimistic environment for the EUR/USD and its medium-term uptrend. However, we will have to see how the ECB meeting fairs and if the EUR/USD is able to barrel through the aforementioned technical barriers.
FastBrokersFX sharing us with its key levels: Present Price: 1.4770. Resistances: 1.4784, 1.4800, 1.4818, 1.4840, 1.4850, 1.4867. Supports: 1.4768, 1.4756, 1.4741, 1.4721, 1.4702, 1.4671, 1.4637. Psychological: 1.50, September Highs