Fri, 22 Oct 2010 14:16:00 +0200

Forex: EUR/USD jumps to 1.3960

FXstreet.com (Barcelona) - The EUR/USD most recently jumped around 40 pips from its last consolidated position at 1.3920 before hitting firm resistance at a session high just above of 1.3960. The pair has since settled slightly under trading at 1.3948 at time of writing as it awaits further impulse on the NY opening.

The Amplify Trading Team gives a strategic outlook: “Looking ahead, we are expecting a consolidation of yesterday’s downtrend, favouring a retracement of the recent losses for the dollar. We think the conflicting comments from the U.S. officials this week have added some extra volatility to the dollar after the market fully priced in any potential Fed’s quantitative easing last week, when the euro reached $1.4158."

They continue: “However, this morning’s better than expected German IFO may limit the downside for the euro. Also, the recent change in correlation between Equities and EUR/USD should be closely watched in the near term as it may provide a better direction.”

Technical Analysis (2010-10-22 12:00 GMT)
EUR/USD 1.3949/1.3951 - O: 1.3841 H: 1.3858 L: 1.3837 C: 1.3856
Trend	R3: 1.4026
	R2: 1.3991
	R1: 1.3956
	S1: 1.3881
	S2: 1.3916
	S3: 1.3951