NordFX afternoon Editorial: Beware the euro profit taking rally suspension
Asia before midday, the euro remained at 1.3350 below the consolidation, the market performance in calm trading week. From a technical point of view, the euro has reached the top of the pressure range, while some investors had for Spain and Portugal, the debt problem is not very optimistic, this will likely cause some investors to cover the behavior of profit-euro short-term upward momentum is expected to be suppressed.
bond auction results following the sound of Portugal, Spain and Italy are also successful auction of government bonds, financing of 3.0 billion, respectively, and 60 billion euros, the euro zone to ease market concerns about the debt crisis prompted investors to cover Euro short positions, and the European Central Bank (ECB) to maintain resolution as expected in the 1.0% benchmark interest rate unchanged, ECB President Jean-Claude Trichet said after the inflation rate last month rose 2.2%, the first time in two years, 2.0% more than the central bank objectives, need to pay close attention to price, so investors betting on future ECB interest rates, encouraging large euro against the dollar rose to 1.3384 high. Support the euro against the dollar today, estimated at 1.3320-50, the resistance at 1.3450-80.
day chart shows, the technical rebound blocked by 100-day moving average, but random index rebounded from oversold, if the exchange rate can break this resistance, it is expected to further upstream. After rising overnight, the euro profit-taking, forecast the euro against the U.S. dollar may fluctuate in the range of 1.3320-1.3420 dollars.
hour chart shows a strong upward trend, but the amendments were facing pressure indicators, high short-term exchange rate may tend to organize days of gains. Support the euro against the dollar today, estimated at 1.3320-50, the resistance at 1.3450-80.
