The European common currency today has rebounded after a sharp decline to begin the week in the forex markets. The euro decreased to start the week despite the European commission’s announcement of a rescue package for Ireland as investors are unconvinced that the Eurozone’s debt problems are sufficiently contained.
The EUR/USD pair fell more than 200 pips on Monday and Tuesday and touched its lowest exchange rate since the middle of September below 1.3000. The decline also brought a pair below the 200-day moving average for the first time since September and into oversold territory on the relative strength index indicator (RSI).
Today, the euro has advanced by over 100 pips against the US dollar and has shot back up over the 1.3100 exchange rate. The pair trades a hair over the 200-day moving average (red line) and it will be notable to see whether the pair can stay over this significant technical hurdle.
About the Author
FxNewsEurope.com – Euro Forex News
