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Euro Unsure in Front of New Records?

May 1, 2007 (Last updated on November 29, 2009) by

Euro is floating in a rather tight range since it hit its new long term high at 1.3688 on 04/27. The corridor for EUR/USD seems to be established between 1.3670 and 1.3590 levels. Even poor fundamental data seen on Monday hasn’t provided any help for Euro in breaking the new record. Possible reasons for this I see in two factors. First — French elections, although their outcome is known with almost no doubts, this factor still possesses some threat to European currency. Second — technical resistances — current EUR/USD rate is near several resistance levels (from long term highs to various waves ends), while weekly RSI is showing an overbought condition. We’ll have to wait for the next week to see if Euro is still able to rally and break new heights.

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