The EURUSD fell from a 15-month high on Wednesday on technical selling and after U.S. President Barack Obama unveiled deficit cuts that were deemed positive for the U.S. dollar.
Overall sentiment toward the greenback, however, remains largely bearish given expectations the U.S. Federal Reserve will significantly lag global central banks in raising interest rates.
Also, on Tuesday a drop in commodity prices dented sentiment toward the Australian dollar, which ended trading near $1.0435. But the Aussie bounced back on Wednesday, buying $1.0506 in recent action.
Trading Setups / Chart in Focus:
The EURUSD took a breather today from its recent ascent. The pair consolidated just above its 8 day EMA and just below a long-term resistance level at 1.4580.
Should price rotate lower in the near-term we will watch the support at 1.4250, near the 21 day EMA, for potential bullish price action trading setups to rejoin the uptrend.
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my Forex trading education website.
On Wall Street today stocks rose in choppy trading conditions as investors bet that earnings from technology companies will be strong, even as JPMorgan Chase’s numbers caused other market sectors to fall.
The Dow added just 7.41 points, or 0.06 percent, the S&P 500 rose just 0.25 of a point, or 0.02 percent, and the Nasdaq added 16.73 points, or 0.61 percent.
Upcoming important economic announcements: 4/14/2011
8:30am EST: United States – PPI m/m
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