Forex: EUR/USD resumes downtrend and tumbles below 1.4300

 @ibtimes on December 18 2009 11:14 AM

FXstreet.com (Córdoba) - The Dollar is rising sharply across the board as stocks lose momentum worldwide. EUR/USD resumed its downtrend and fell below 1.4300 to 1.4260 reaching the lowest price since September 4. Currently the pair trades at 3-month lows at 1.4262/65, 0.55% below today's opening price. On the downside the next support could be located at 1.4255 and below at 1.4225 and 1.4200/05 (August 20 / 26 low).

The Wells Fargo Research Team affirms: The euro's inability to sustain gains despite that favorable data, and with conditions ripe perhaps for some corrective euro strength, is a warning sign that sentiment for the euro is still fragile and that further downside is possible.

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