Euro Gains in Light Trading

NEW YORK (TheStreet) -- On light momentum, the currency market traded in a split fashion in Wednesday trade, with the euro and the swissy posting gains, while the other major currencies declined against the dollar.

This divergence between the major pairs is rather strange, since the euro had lagged behind the market over the last few months of trading. During the European session, Mr. Trichet reiterated its comments that the global economy needs a strong dollar.

Dollar Index Technical View: TheLFB Member Charts

Daily chart trend: Short. Main price points: 74.00, and 75.00. Looking for: Wave C)

Prices on the dollar index have reversed over the past week around the black resistance line, influenced by a higher stock market. Currently the market is threatening the yearly lows, where a break-out will push prices into the next main leg of short trade that threatens all-time lows. This is shown in the blue wave V) of an extended red wave V leg, of larger C), which may find the lows somewhere around the 74.00 area.

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Trade Plan of the Day. Currency Glossary.

The euro (Eur/Usd 1.4940) is still holding in the green, even though the other major pairs posted important declines against the dollar. The euro's uptrend came during the European session, while it spent the entire U.S. session trading side-ways. On the daily chart, the euro is trading above all the important moving averages.

Euro Technical View: TheLFB Member Charts

Daily chart trend: Long. Main price points: 1.5062, and 1.5200. Looking for: Wave C top

The Eur/Usd is trading higher, threatening the 1.5062 area after the market was unable to break through the daily support line in the past few weeks, which is connected from the 1.2329 lows. Traders may already be targeting the 1.5200 zone, around the Fibonacci resistance levels shown on the chart.