FXstreet.com (Barcelona) - The Euro has collapsed in the last moments against the Dollar on the back of Ben Bernanke comments that the Fed expects a moderate economic growth in 2010 with very low rates for extended period. EUR/USD has fallen around 100 pips in the last hour from 1.4980 to break MA100 hourly at 1.4950 and MA55 and MA220 hourly zone at 1.4910/20 to trade below 1.4900 zone and hit intra-day low at 1.4880.
Currently the pair is trading around 1.4905/15, 0.10% below today's opening price action at 1.4915.
Chris Capre, analyst at Second Skies, comments: Not quite trotting in place like a show pony but being rejected at the new highs while making mild gains on the week, the pair has yet to close above the big figure at 1.5000 which we feel is the first requirement for new buyers to come in. The 2nd requirement will be breaking a closing above the yearly highs at 1.5061. If these two events should occur, then we expect a run up to 1.5281 which was the double bottom in the summer of 08'. Any weekly closes above this level suggest the 1.6000 barriers will likely be under attack and really challenge the previous notion in the banking world that EURUSD is 'protected' at 1.6000 from going any higher. The angle of this trend and the lack of closing or even piercing below the weekly tenkan suggest the trend is alive and well but has the aforementioned hurdles to spark new technical buying.