EUR/USD well supported by risk appetite

EUR/USD extends its advance to fresh highs on the back of yesterday’s FED announcement on QE3. Risk appetite rules the boards, dollar is being sell against almost any rival, and corrections are still been quite limited despite greenback extreme oversold conditions. The EUR/USD hourly chart shows indicators heading slightly lower after recent slide towards 1.3078, still in positive territory, while the price heads back north above a bullish 20 SMA. In the 4 hours chart indicators are strongly up despite deep in overbought territory, with price posting higher highs and higher lows in each candle ever since the FED. The upward momentum is quite strong, although risk of profit taking may increase after London goes home.

Support levels: 1.3075 1.3030 1.3000

Resistance levels: 1.3120 1.3145 1.3180

Small bids seen on dips to 1.3120 now

Whats Next for the Eur/Usd.

EUR/USD in consolidation mode now after a week of frantic short-covering took us well beyond what few but the most bullish traders saw possible this week. Buyers are seen around the 1.3120 level, a top for a time earlier in the session. More are seen toward 1.3080. Light resistance is seen at 1.3180 near-term Heavier resistance does not come into play until 1.3280

Is it time to Short - With the dollor looking under stress world wide could we see even higher gains on the EUR.

Well I'm Looking to Short @ 1.3220 and see how it play out, all this Drive up for the EUR can't go on much Longer. Euro Zone is not out of the water yet Only a very weak Dollor has seen such rises in strengh for the Euro.

Time will Tell.

The Euro This Week:

Snowball effects were observed across the FX market in the closing stages of the week, with aggressive USD debasement evident throughout the session on Friday, as market participants reacted to the latest announcement in relation to yet another QE program from the Fed. As a result, EUR/USD continued to squeeze higher, also benefiting from likely reduction in the rate-differentials. The pair also benefited from the fact that the Constitutional Court in Germany allowed the ratification of the ESM, albeit with conditions. In turn, by the closing stages of trade on Friday, the pair was trading firmly above the 200DMA line, with the 3-month implied vols at lowest level since the collapse of Lehman Brothers. In terms of technical levels, supports are seen at 1.2980/46 and then at 1.2900. On the other hand, resistance levels are seen at 1.3181, 1.3242 and then at 1.3284.