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Euro Finds Support From Successful Bond Auctions
Written by article default Tuesday, 21 September 2010 18:24
The EUR/USD breaking above its range top of 1.2900 led us into a long position where we are targeting 1.3300. However, the 200-Day SMA at 1.3221 has come into play and could provide solid resistance. Sucessful bond auctions from Ireland and Spain has helped ease sovereign debt concerns which has been the main threat to Euro support. Therefore, we still favor a test of the technical level but remain leery of the FOMC meeting. Additional QE could extend the current rally and add to our profits, but an upbeat Fed could spark a greenback rally. The central bank will most likely remain cautious with fundamentals sending mix signals which should keep the pair on a path to test resistanClick here to learn more about DailyFX.