Forex: EUR/USD consolidating, bounce off intraday low 1.4336

By IBTimes Staff Reporter | January 17 2010 9:41 PM

FXstreet.com (London) - EUR/USD has bounced off session lows of 1.4336 touched earlier in session. Weak labour data recently has made investors reconsider near-term and indeed long-term prospects for the national and global economy. Pair currently quoting at 1.4353, still off nearly 20 pips from the opening price.

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Credit worries are still linger, and eyes this year will focus on the development and action of the respective government for many Eurostates including Spain, Portugal, Sweden and in particular Greece.

Pair currently consolidating but likely to drift to downside extending previous session trend, based on more demand for Dollar and less demand for riskier currency pairs. The series of major company reports will be the next key signs on the recovery road for investors.

For primary resistance we take 1.4380 (strong consolidation area previous session), and for support should downside find momentum again, we look at 1.4330 for the pair to extend bearish trend.

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