Business-Insider

by John Jagerson

As most people that read our commentary know, Wade Hansen and I do not always agree. However, there is an important analysis that Wade did recently that I think should be repeated. If you would like to see his original article, click here: http://www.pfxglobal.com/index.php?o...id=188&id=1807

By now everyone knows that the positive retail surprise this morning played out as expected with a bounce from resistance on most USD quoted pairs. One of these, the EUR/USD however remains bound within its flag formation that has been emerging since the uptrend ended last November. We are near support on that formation and today's decline may have a short lifespan. A break back up to the upside could have a nice profit target well above 1.5000.

Although my comments above are technical in nature, I think the fundamentals are in line with this assessment. The Euro is not the strongest currency in the market but considering the "life-line" language coming from the US Treasury Secretary lately, I think the USD may be the weaker of the two from a fundamental perspective as well.

Bottom line: Watch for a near term bounce off support and a potential long term break above 1.5000.


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