Fri, 27 May 2011 01:23:00 +0200

Forex: No one wants EUR or USD - K.Lien

FXstreet.com (Barcelona) - The second release of the US GDP in Q1, significantly lower than expected, shows the struggles of the economy, while additional doubts Greeks will receive the next tranche of aid from IMF created erratic volatility in the EUR/USD.

"The U.S. dollar fell to a 3 year low against the New Zealand dollar while the euro fell to a record low against the Swiss Franc, suggesting that no one wants to own U.S. dollars or euros" observes Kathy Lien, director of currency research at GFT Forex.

Nonetheless, the ugly contest between the two currencies, according to Kathy Lien, is still limited of having any meaningful upside recovery: "All of the speculation about Greece not receiving aid, possibly defaulting on its loans, doesn’t make the euro attractive. For the time being, we do not expect any significant recovery in the EUR/USD until more concrete progress is made on this front".

Technical Analysis (2011-05-26 23:00 GMT)
EUR/USD 1.4133/1.4134 - O: 1.4132 H: 1.4145 L: 1.4131 C: 1.4138
Trend	R3: 1.4204
	R2: 1.4169
	R1: 1.4134
	S1: 1.4058
	S2: 1.4093
	S3: 1.4128