EUR/USD (intraday): upside prevails
EUR/USD shot up on Wednesday only to give back the majority of the gains in the afternoon of New York trading, as traders from across the Atlantic sold off the stock market and rushed into the bond market pushing the US dollar higher.
At 1.2750 at the time of writing the bulls are dragging the pair further following the release of a stronger than expected German GDP figure. After having rebounded on 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.
We should keep in mind though that EUR/USD is in a strong negative trend in the long term, where any upside potential could also be seen as a good buying opportunity. The key resistance level for bears to watch sits at 1.2825. All eyes will be focused on the eurozone GDP at 10am UK time. It looks like the single currency will need a particularly disappointing region-wide GDP figure to yield significant bearish follow-through.
Published: 15 November 2012
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