FXstreet.com (Barcelona) – While the US Dollar is battling to stop the bleeding from the past few trading days against the Euro, the latter currency looks poised to extend its gains further given the shallow pull-backs seen. Current price: 1.3375.
“The danger would still seem to be for some more short-covering and the short-term charts are showing no signs of any topping formation” commented Sean Lee, Editor at Forexlive.
Meanwhile, in an exclusive presentation for Reuters Insider, Don Haines, Analyst at Capital Mangement said: “We should expect to 2 more new highs to unwind the nesting process in the 1.2870 to 13145 range. Ideally, short term 1.3315 support will hold for an initial test of the former 1.35 figure peak”.
Don added: “While this should prompt another correction, we believe there is scope for final new high closer to the ideal 1.3620 corrective target, or 50%, before the eventual downside reversal. Only a direct loss of 1.3145 would argue for an early reversal pattern“.