Forex: EUR/USD finds support at 1.4090 and jumps above 1.4150
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DiggFxstreet.com (Barcelona) – The Euro's decline against the Dollar after the better than expected US GDP has found support at 1.4090, and the pair has bounced around 80 pips to break 1.4150 and trade close to 1.4170 at intra-day highs.
Currently the pair is testing the 1.4175 level (SMA200 level in the hourly chart), trading 0.65% above today's opening price, continuing with its recovery from 1.4005, yesterday low.
A better than expected GDP, however, has failed to trigger risk petite, as, according to Kathy Lien, Director of Currency Research at GFT GDP data was staffed with economic weakness signals: "The GDP report was filled with underlying weakness. On top of the drop in personal consumption, prices grew at a slower pace. This means that demand and inflation is weak. Therefore the Federal Reserve won't be raising interest rates anytime soon."
Rajoo C, analyst at Precise Trader, expects the pair making highers today: “Hourly Trend is Sideways while 14065-40 holds, so expect the price to make Higher Highs but the Upside may be limited. The Patterns on the Hourly are Choppy and creeping Higher but the Upside may be limited and should not trade above 14230-14245 level for today. The Patterns on the 5 min are bullish while 14065-40 level holds and gives a Price target of 14160-14245 for today. EUR is strong against at least three and flat against most crosses. Coming to Week end and Month end Cautious approach is needed and expect a Choppy or even a quiet session. Conservative Traders should look to be Sidelined or Strictly trade only at Precise Trader's Forecast Report Levels. Aggressive Traders should do the same until there is a clear Signal.”
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