The Euro vs. USD price action has been at a standstill without any real clear direction. Much of which is fundamentally oriented with what has been happening with Europe especially with Spain in the limelight. The fear of contagion has not left much room for the Euro even to move in either direction. The bias sentiment from most analyst is still bearish.
The 1.2850 -1.2990 trading support levels has been constant despite most traders outlook of breaking a low remains in place. The technical recovery can be seen right after touching the 1.2985 and due to the buying divergence created from this low; plus some short covering did emerged after breaking the 1.3000/25 initial support. have made it possible. Alongside with the USDx coming back to the 80.18 basis levels gave enough momentum for the EURUSD to move higher. However, the USD moving in both directions then heading lower, have given enough room for the Euro to keep pace with the GBPUSD higher. The end of the week's closing price for these majors are critical to re-establish a clear trend but expect to have a continuation of increased volatility more with the EURJPY & GBPJPY cross rates.
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