The head of the Deutsche Bundesbank, Jens Weidmann has issued a response regarding ECB President Draghi’s comment last week about the EUR exchange rate.  Mr. Weidmann stated that the EUR would “NOT†be overvalued at current levels.
Given the fragility of the markets lately, that was all it took to bring the single currency above the 1.3400 and test the 1.3430 resistance area. To this point we haven’t moved higher so this is somewhat of a concern for the EUR “bullsâ€.
Many traders are waiting for later this week, when the G20 meets to see if in fact there will be comments regarding the so-called “currency warâ€, that is anticipated due to the recent weakness in Japanese Yen.
A failure in EUR to break through 1.3430, would probably see a re-test lower to the 1.3360-80 area that the currency was trading ahead of the Weidmann comment.
Further reading:Â Forex Analysis: EUR/USD Tentatively Stalls Bearish Correction
