Forex Trading - Taking a Step Back on EUR/USD (CLICK FOR CHART)

Taking a step back on the EUR/USD pair after the huge move the last few weeks, we notice some interesting levels to come if the US economic recovery is truly on the horizon and the Euro-zone's economic deterioration accelerates. Using the pairs lows in November of 2005 and the new recent highs we see the pair break the 55 week moving average 100 pips ago and the 38.2% retracement looks like good long-term support below the 1.44 handle. Further down the road we notice the 61.8% retracement and 200 week moving average converging. We will keep you clued in if these economic developments unfold and these levels become more realistic.