The effort of EURUSD to update the 1.4270 high failed and made the price decline by almost 100pts, going back to the level of August-September 2010.
Probably Ben Bernanke’s speech turned out to be the main obstacle for the common currency. The key statement implied that the monetary authorities should exercise tougher control over the inflation dynamics and consumer prices. It strengthened the US Dollar, thus restraining the growth of the common Euro currency.
Today’s major news releases are expected to come out at 8.00, 9.00GMT and at 14.00GMT. The impact of the news factor is rather moderate.
For today the Department of Volume Analysis of has defined the following trends:
The mid-term trend of EURUSD: consolidation
The short-term trend of 6EM1 (EURUSD futures) is the following:
The weekly level of 1.4170 (about 1500 lots) is the key one at the moment. If the bears manage to prevent the price from breaking above the level, they will dominate the market. However, if the bulls have enough strength to resist and break through above the mentioned level, another uptrend (forming new local highs) is highly probable.
