The Euro rose today against the US Dollar in forex trading action following up an increase on Friday. The EUR/USD pair peaked over the 1.3100 exchange rate today before retreating to just around the 1.3100 level at the close of the New York trading session at 5pm EST. Today’s close was the highest closing price since April 16th when prices ended the day at approximately 1.3176.
The levels at 1.3100/1.3125 present resistance obstacles to the upside. Piercing these levels would bring a retest of 1.3200 that provided resistance twice recently on April 16th and April 17th. Below looms the major level at 1.3000 which would likely bring a base of support.
Will the Euro be able to maintain its strength?
The European Central Bank interest rate meeting is coming this week on Thursday and there is market speculation of a potential rate cut. A rate reduction could very well sap any upside energy for the euro and perhaps we see a retest of 1.3000 level. But there are two more trading days before then and we can only wait and see how it plays out.
Pivots and Trends Data:
Weekly Pivot Point: 1.30310
Monthly Pivot Point: 1.28883
Linear Regression Indicator Trend / Strength Data:
30-day current trend is BULLISH / Trend strength of 297.8 pips
60-day current trend is BEARISH / Trend strength of -121.2 pips
90-day current trend is BEARISH / Trend strength of -570.1 pips
180-day current trend is BULLISH / Trend strength of 171.3 pips
365-day current trend is BULLISH / Trend strength of 373.3 pips
Article by CountingPips Forex Blog, News & Analysis