EURUSD Posts 4-month High Settlement
The Euro continued last Friday’s recovery rally by challenging the 140 level, putting itself into a position to re-test the 2010 highs at 142.80. A strong yen lent stability to the majors as the Bank of Japan’s actions in the face of the horrible situation there continues to remind traders that as bad as the earthquake was, a financial flight to quality was avoided.
In trader parlance it can said, “if you like the yen, you have to love the euro”.
Today’s price action in the Euro also reminds us of the validity of trading in the direction of the higher time frame trends. The yellow line on the chart represents current daily direction, while the white line is the weekly direction.
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Jay Norris is Chief Market Strategist at Clovernest Financial Group, and the author of Mastering the Currency Market, McGraw-Hill, 2009.
DISCLAIMER: Forex (off-exchange foreign currency futures and options or FX) trading involves substantial risk of loss and is not suitable for every investor!
