Updating time : 02/11/2007 00:19 GMT

EUR/USD - 1.4426...The single currency declined in European morning y'day to 1.4404 due to cross selling in euro esp vs sterling n chf b4 briefly recovering to 1.4479 in U.S. session, however, unwinding in eur/jpy on risk aversion due to the selloff in U.S. stocks pressured price again in NY afternoon.

Y'day's fall to 1.4404 indicates recent upmove has indeed formed a temp. top earlier this week at 1.4508 n as long as o/n NY high at 1.4479 holds, consolidation with downside bias remains for another corrective decline, below 1.4404 wud encourage for further weakness twds 1.4374/86 (sup n 38.2% r of intermediate rise fm 1.4188-1.4508), however, below 1.4348/49 (50% r n prev. res) is needed to retain bearishness for stronger retracement to 1.4317/20 (38.2% r of 1.4015-1.4508 n 50% r of 1.4126-1.4508). Therefore, trading fm short side is favoured but readers shud look to take profit once price penetrates 1.4404 (important U.S. employment data is due out later today at 12:30GMT).

Abv 1.4479 risks possible re-test of 1.4508 top, break wud extend uptrend to 1.4525/30 but 1.4585 (61.8% proj. of 1.3360-1.4283 fm 1.4015) shud cap upside.

http://www.AceTraderFX.com

Can anyone give me a believable rerason for the appreciation of the EUR vs the USD. Fundamentals don't explain it, econimic growth doesn't, int rate doesn't either.

thanks for ace trader information the moving average seems converaging and the stoch lines seem proving that as well!

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