Forex: EUR/USD trading at 3-week highs

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Forex: EUR/USD trading at 3-week highs

FITITOL--> FXstreet.com (San Francisco) - The US dollar ended the day lower against the common currency on Wednesday, fueled by comments out of the U.S. Federal Reserve without any mention of QE, but did say that “they are prepared to do more if needed,” which was enough to kick up confidence among market players.

In Asia, EUR/USD is trading in a limited range between 1.3215 and 1.3232, last at 1.3222. In the 4 hours chart a limited bullish tone is seen, according to Valeria Bednarik, Chief Analyst at FXstreet.com, “although as long as the pair does not break above the daily descendant trend line around 1.3240 today, gains will remain limited,” she says. “Clearance of the resistance area, should favor a continuation rally towards the 1.3300 price zone,” with more immediate resistance noted at 1.3240 and 1.3290. To the downside, support levels lie at 1.3210, 1.3180 and 1.3130.