Forex: EUR/USD finds resistance at 1.4200 and rises to test 1.42

Mon, Jul 20 2009, 16:36 GMT
http://www.fxstreet.com
FXstreet.com (Barcelona) - EUR/USD has found support at 1.4200 level after declining around 50 pips from 7-week high at 1.4249 during the American session. In the last hour, pair has risen around 40 pips to climb to 1.4240 resistance. Currently the pair is trading around 1.4220/30, 0.90% above today's opening price action, in consolidation mode after the last bullish movement.
Valeria Bednarik, FXstreet.com collaborator, comments: "Hourly charts remain consolidating close to daily highs, as sentiment remains strongly bullish in the pair, thus hourly indicators show some over bought conditions. Despite that, no signs of correction or reversal clear at this point. Bigger time frames also approach to extreme conditions, so expect some retracement in next hours. If not, as further the rise, as stronger correction will be later."
Bednarik provides us with her levels: "Support levels: 1.4200 1.4180 1.4140. Resistance levels: 1.4250 1.4290 1.4335."
EUR/USD
EUR/USD (Jul 20 at 17:01 GMT)
1.4228/28 (0.79%)H 1.425 L 1.4106
S3 S2 S1 R1 R2 R3
1.4159 1.4195 1.4230 1.4228 1.4264 1.4300
[?]Trend Index [?]OB/OS Index
Bullish Neutral
Data updated on Jul 20 at 16:55 (15-minute timeframe)