By Russell Glaser – Rising equities in Europe have helped to support the EUR during the European trading session. While the gains for the EUR have been limited, the positive momentum from yesterday’s U.S. trading session has carried over into today’s trading.
The EUR/USD is trading higher at 1.2325 after opening the day at 1.4386. The EUR/USD upward movement appears to have been limited by the resistance level at 1.2340. The GBP/USD is trading up at 1.4414 from an opening day price of 1.4386. The USD/JPY is unchanged at 90.30.
Equities have continued to rise since yesterday’s volatile New York Trading session. The Dow Jones Industrials was significantly lower by almost 300 points at the beginning of trading, but the Dow came back with a 200 point rally following the release of better than expected U.S. consumer confidence number. The positive momentum has continued into today’s European trading session as the DAX is up 1.9% while the FTSE 100 is up more than 2%.
Traders will be looking for an excuse to trade the EUR/USD lower, and that may come from today’s release of the U.S. Core Durable Goods Orders. Positive numbers from the U.S. economy, along with staunch negative sentiment against the EUR could send the EUR/USD below the support line of 1.2140, towards the psychological support level of 1.2000.
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
