Daily Forex Update: EUR/USD

The EUR/USD rally soldiers on as the Euro continues to gain slightly on the weaker (and flattening) Dollar. The Euro’s strength remains despite pessimism regarding the currency reaching an all-time high, due in large part to the continued debt problems seen across Europe. The strength of the EUR/USD is considered by many traders to be a long overdue technical bounce and profit-taking rally, rather than an actual reversal. Prices are finding intraday resistance between 1.2400 and 1.2413, and unless the EUR/USD can find footing above 1.2520 it’s unlikely that the pair will have shifted away from the still-pervasive negative sentiment within the market. The perception is that bounces such as this one will be sold into; however, with the flat U.S. equities market and the weak U.S. Dollar, the Euro is enjoying a reprieve – and its strongest rally since the move lower from November 2009.