A more technical look at the markets from InterTrader
Wednesday saw the EUR/USD pair shoot up, only to give back the majority of the gains in the afternoon of New York based trading.
This came as FX spread betting investors from across the Atlantic sold off the stock market and rushed into the bond market pushing the USD higher.
At $1.2750, at the time of writing, the bulls are pushing the pair higher following the release of a stronger-than-expected German GDP figure.
Having rebounded off its new support and with the RSI turning up, the pair looks set to post further advances. A break above $1.279 would expose the $1.2825 area.
However, we should keep in mind that in the long-term, the EUR/USD is in a strong negative trend, where any upside potential could also be seen as a buying opportunity. $1.2825 is the key resistance level for bears to watch.
All eyes will be focused on the release of the Eurozone GDP figure at 10.00am GMT. It looks like the single currency will likely need a particularly disappointing region-wide GDP figure to yield significant bearish follow-through.
Good luck and happy trading
Dafni Sedari, InterTrader
(Original article written 15 November 2012).
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