FOREX

EURO MOVES HIGHER TOWARDS TO NEXT TARGET

The EURUSD has moved through the 1.3585 level (50% of the move down from the Feb 9th high) and approaches the high for the day at 1.3609. A move above this target will look toward the 1.3623 level and the 1.3630 level (See chart above).  This is the 61.8% and the trendline resistance.  This area should provide good selling interest from the market. 

On the downside, the market will want to see the price stay above the 1.3575-85 level for the pair. Failure to do so, will likely be a disappointment for the pair.

The better/great Philly Fed index (highest since Jan 2004) is not really impressing the dollar. The EURUSD sold off but has rebounded back higher toward the high. The USDJPY rallied but is back down and making new lows.  The USDCHF is back down testing its key support target at the 0.9494-99 area.

There could be a couple reasons for this.

One is the market is moving to risk pairs and selling the dollar. The other idea (and more logical) is that the inflation component rising to 67.2 from 54.3 (CPI was higher as well), with ambivalence from the Fed, could be the thief that keeps the investors from the dollar.  Don’t fight it. The dollar is under pressure
sources: Forex News and Commentary by fxdd.
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