Rate scores another new high during New York trade and holds above technical retracement; bears take a stand at 1.4180 area and lose. Toolbox signals Strong Trend sell around current levels but is negated on today's action.
Technical traders will be looking for a test of the 100 day MA near-term to offer support this time after blowing through to the upside. Traders note lots of aggressive active buying getting disappointed. Stops building in size over the 1.3750 area cleared all the way to 1.4180 area.
Traders note some stops within range overnight suggesting longs are late or nervous. Correction is likely. Likely bulls will lighten up but will need to see failure at 1.4400 area first I think. Stops likely now around 1.4450 area.
Resistance 3: 1.4520
Resistance 2: 1.4480
Resistance 1: 1.4430/40
Latest New York: 1.4360
Support 1: 1.3850
Support 2: 1.3780
Support 3: 1.3720/30
Data due Thursday: All times EASTERN (-5 GMT)
4:00am EUR German Ifo Business Climate
4:00am EUR Italian Unemployment Rate
5:00am EUR Trade Balance
Forex Analysis by Jason Alan Jankovsky at ForexPros.com. For more details about Forex Trading and Tips for decent earnings through Forex Trading, Please check http://www.forexpros.com