Tuesday, March 22, 2011

EUR/USD 1,4200

Majors are steady against dollar in this quiet American afternoon, with the greenback showing mixed intraday results, as market seeks for direction in a highly uncertain environment. EUR/USD holds around the 1.4210 area, barely below past Asian session opening, as investors had choose to take some profits out the table ahead of upcoming events in Portugal: the houses should decide if the bill with the austerity measures will be supported or not. Past Monday, the PM has stated that he is ready to quit if the bill is rejected.

According to Andrei Tratseuski from Forex Club, the EUR/USD may be possible forming a top near 1.4300, past year high, although he adds: “the pair needs to break through a 1.4300 level in order to sustain the current rally, while support lingers at 1st Standard Deviation at 1.4100. The currency pair must remain above 1st Standard Deviation to maintain its current uptrend and possibly test last year highs”.

source: fxstreet.com