Looking at EURUSD 4 hour chart, pair bulled back from resistance from Daily chart at 1.4300 and currently testing upper trendline. EURUSD can bounce from here and continue moving higher. If it breaks and close below the trendline then we can look for shorts.
US Dollar index is till bearish and most likely to head lower. For a sustained upside move it need to go past 78.40 area.
Market Analyst are split with their view regarding usefulness of QE2.0. Some says QE2.0 funds spent to better U.S. economy will help global recovery, other says if funds somehow invested indirectly into emerging economies then it will create new bubbles in those countries. In my opinion, a declining dollar and lower interest rates will eventually cause capital to flow to emerging countries, which in turn will appreciate their currencies and hurt their economies by reducing export potential.
This week there are not many important news releases except for G-20 summit which could be the biggest driver in currency markets.
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