Despite robust corrections lower in AUDUSD and GBPUSD, EURUSD continued its up-move posting a new high of the move today at 145.20 to keep both its 4-hour and Daily trends pointed higher.

Bulls today became particularly emboldened in pressing long positions after EURUSD showed very little reaction to sharply lower than expected ZEW economic sentiment numbers for both Germany and Europe. Given the Euro’s heavy weighting in the U.S. Dollar Index – 57.6% -- it’s hard to take dollar strength against the Aussie and Sterling too serious. The 4-hour EURUSD chart shows our upside target for the current bull run at 146-50, which is the approximate 66% retracement of the 2008-2010 bear move.

Jay Norris is the author of the soon to be released Mastering Trade Selection & Management, McGraw-Hill, 2011.

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