Forex: EUR/USD dips lower to test 1.4300 level

By IBTimes Staff Reporter | January 19 2010 6:42 AM

FXstreet.com (Barcelona) - Euro recovery attempt from 1.4330 low has been capped at 1.4415 high on European session, and the pair, weighed by Greece woes and a negative Zew economic report, has extended decline from last week high at 1.4580, to 1.4300 area, which is being tested at the moment.

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In case of piercing below 1.4300, next support levels lie at 1.4280, and then 1.4260 (Jan 8 low). On the upside, resistance levels lie at 1.4350/60, and above here, 1.4380 and 1.4425.

According to Peter Rosenstreich, tecnical analyst at ACM - Advanced Currency Markets, below 1.4295, the Euro would target 1.4250 and then 1.4000: Since the break of 1.4457 support, EURUSD has traded heavily, and looks likely to threaten support at the 200 day moving average at 1.4293, which if breached, would lead to the more significant support zone around 1.4250. A close below 1.4250 would reinstate a look at the downside targets 1.4000. Resistance should be capped at 1.4570/4625.

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