Forex: More EUR/USD gains yet to come - V.Bednarik

FXstreet.com (San Francisco) - EURUSD enters the Asian session flat around 1.3050 after advancing to 6-week highs on Monday, reaching 1.3075 before closing up 0.4% on the day and recording its fourth successive day of gains.

The US dollar took a hit yesterday on disappointing manufacturing PMI readings, which weighed on equities and risk sentiment generally; "Regardless the fundamental situation, there are no signs yet of a reversal or a top finally been reached in the pair, but even short term charts suggest more gains are yet to come which supported the cross" comments Valeria Bednarik, Chief Analyst at FXstreet.com.

From a technical standpoint, Ms. Bednarik also notes that the pair is developing inside an ascendant channel; "The base of the ascendant channel comes around 1.3030, and as long as above that level, bulls will lead the way," she says. At the time of writing, EURUSD remains unchanged as participants await the RBA interest rate decision today in Asia. Support levels are noted at 1.3030, 1.3000 and 1.2970, while resistance levels lie at 1.3080, 1.3110 and 1.3145.