Euro/Dollar edges higher into resistance
The Euro (EURUSD) continues to build on yesterday’s gains and has opened the European session firmly this morning, testing the resistance around 1.1715 level. While this is a relatively short-term hurdle the real test will come 20 points higher at 1.1730-1.1750. We’d expect Stop Loss buying above that level, and an acceleration towards the next target at 1.2230. This will not be a straight run up, as the market is too liquid to be caught in a major Bear squeeze, so traders will need to keep their wits about them, as well as one eye on the possibility of contagion from the Turkish Lira debacle, where it currently trades at 7.68 against the Euro, with no sign of pressure easing in the Turkish economy.