Better than anticipated government bond sale in Spain, sparked a risk appetite rally in the Euro. Adding to better news were superb retail sales in the U.K. Meanwhile, economic event in the United States were not market moving as Consumer Price Index came in-line with the expectations. The following puts us at bay of technical analysis guiding the markets instead fundamentals, in today's trading. However, the technical analysis is on cross roads of both directions.
The following situation puts us between a rock and a hard place in terms of trading. In yesterday's article, we stated that the EUR/USD will once again go back to the support line, but remain in an uptrend, http://www.dailyforex.com/technical_analysis/2010/06/_5110_dailyforex-news_EUR_USD__A_Short_Term_Uptrend.aspx. Nonetheless, now the situation is completely different, the intermediate trend may be coming to an end. However, how high will the pair go before it turns around is anyone's guess. A word to the wise, sit out for a bit until decent set-ups are originated.
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