ForexSpirit

The move by sterling on Tuesday to break above the psychologically all important level of 2.00 on GBP/USD put paid to any chances that we might see a blow off in EUR/USD (which I had thought might be a possibility last weekend).

Once sterling surged past the 2.00 level on much stronger than expected consumer price number things were going to look pretty rosy for the euro too.

The EUR/USD pair stayed above the 1.35 level all week, making about a 100 pip move up to 1.3620, still just shy of the all time high at 1.3665. This continued bulliness resulted in a grid move mid-week, which is probably no surprise since we had been above the prevous grid high of 1.35 for a number of days.

The new grid range is from 1.33 to 1.37. There is seemingly decent support at the 1.33 level as evidenced by price action in late March and early April. The 1.37 top price is just above the all time high and will probably be tested pretty soon.

The dollar just can’t seem to catch any love at the moment and the other main currencies are making the most of it. Both the ECB and BOE are expected to raise interest rates in the near future, and yesterday’s poor US leading index and Philly manufacturing index numbers do not bode well for any resurgence in the American economy just yet.

I had another two profitable trades this week, although I am wary of looking for any real extended gains until we do see a sustained pullback of some sort.