The Euro surges against the greenback as much expectation are associated with U.S. Federal Reserve meeting scheduled on Wednesday. It is expected that the decision of high level of bond buying will support the US economy.
The Euro surged to 1.3938 against the greenback as compared to 1.3888 verses US dollar on Monday at New York trading session. On Monday the US dollar got some support from the strong US manufacturing data which came as surprise to everyone.
It is expected that the big purchasing of US government debt will result in decrease of interest rates and will facilitate more borrowing and spending.
The Euro hit the day’s high of 1.3966 versus the US dollar depicting the surge of 0.4 percent. Looking the price history it seems that the level of $1.40 is where Euro has always find resistance.
Further technical analysts also define trading range of $1.3750 to $1.70 for Euro based on prices movements since the October. However it is also expected that the Euro will define new resistance and support levels after the U.S Federal Reserve meeting scheduled on Tuesday and Wednesday.
