Since the start of this week, EUR/USD has been heading northwards. And, earlier during the London session, the pair touched 1.3260, the
highest point this month. Traders have shifted their focus to riskier assets due to strong reports of euro-zone debt auctions released earlier in the week.
EUR/USD has continued to maintain its bullish momentum since the beginning of the week due to risk taking among traders who have avoided safe haven assets. As a result, the common currency has been gaining considerable ground across the board. Although the dollar managed to recoup some of its losses after the positive economic news released from the U.S. today, the real effect of this is yet to be seen in the market.
EUR/USD has been on an uptrend for sometime now. Immediate resistance for the pair is found at 1.3260. A convincing break above this area could expose 1.3333. On the flipside, immediate support is found at 1.3157. A convincing break above this area could expose 1.3063.
Medium term traders who were long in the pair should hold on to their positions as long as the bullish momentum is still evident. However, they should remember that the euro-zone debt problems still have the possibility of making the common currency depreciate in value. Short term traders would rather wait for all this drama and the earnings season to end before having a fresh call on the pair.
DISCLOSURE & DISCLAIMER: THE ABOVE IS FOR INFORMATIONAL PURPOSES ONLY AND NOT TO BE CONSTRUED AS SPECIFIC TRADING ADVICE. RESPONSIBILITY FOR TRADE DECISIONS IS SOLELY WITH THE READER. FOR MORE INFORMATION AS WELL AS UP TO DATE FOREX ANALYSIS VISIT www.forex-australia.com.au
