Tue, 06 Jul 2010 16:23:00 +0200

Forex: Euro strengthens on ISM data, EUR/USD hits new 6-week high

FXstreet.com (Barcelona) - The Euro is on the rise against its major rivals after a significant boost due to a lower-than-forecast figure in the ISM non manufacturing index in the US (53.8 actual vs 55 forecast).The currency tops today's gainers alongside the Aussie, mainly aided by fresh capital inflows as the search out for riskier assets prevails as the primary goal on Tuesday.

On the fundamental front, a string of encouraging news also helped the rise of Euro. The RANsquawk Research Team wrote on a few contributing elements such as: “EU’s Rehn financial back-stops are in place as a safety net to assist EU countries. Besides, there was well received auctions from Austria and UK, which waned sovereign concerns”.

EUR/USD just rose to a new 6-week high at 1.2638, as the bullish climax resurfaces once more. The pair trades 0.80% higher than previous close. EUR/JPY jumped to a new 1-week high at 110.83 on the news. EUR/GBP broke through 0.8300 level for a second time topping at 0.8312. (new 2-week high). EUR/CHF also climbed to target 1.3400 back again.

Technical Analysis (2010-07-06 14:03 GMT)
EUR/USD 1.2622/1.2624 - O: 1.258 H: 1.2619 L: 1.2573 C: 1.2619
Trend	R3: 1.2651
	R2: 1.2620
	R1: 1.2588
	S1: 1.2511
	S2: 1.2542
	S3: 1.2574