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Is 1.5400 a Limit for EUR/USD?

March 6, 2008 by

Today EUR/USD renewed its historical maximum on Forex market again. With almost every day for this currency pair being positive in gain, the question arises — where will it stop? So, where is the medium-term resistance for EUR/USD? Is it 1.5400? 1.5000 was a major psychological barrier; after it was broken recently the EUR/USD has already reached 1.5372. In my opinion, dollar will continue to fall for as long as the Fed will be cutting the interest rates and the ECB will be holding or increasing the rates. It’s possible that the pair will touch 1.5800 until they both stop.

Initial jobless claims report failed to hold EUR/USD from reaching a new maximum; in the past week they were at 351,000, below the previous value (375,000) and the forecasted value (360,000).

Pending Home Sales Index in January remained at the same low level as in December — at 85.9%.

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