Forex: Euro's recovery tests 1.3960 resistance against Dollar

EUR/USD has risen around 60 pips after finding support at 1.3897 (coming from its 80 pips decrease from 1.3979) to test 1.3965 resistance in the European session. The Euro's recovery has been testing this level in the last three hours, trading in a small range between 1.3940 and 1.3965. Currently the pair is trading around 1.3955/65, posting 0.10% daily gains from opening price.

Markets are waiting ECB's president Trichet speech at 10:30 GMT and, according to Rajoo C, analysy at Precise traders, market could be quiet before that: "The Price is trading within the Resistance and Support ZONE 1. ECB president Trichet Speaks probably we can expect a quiet session before that event. The Hourly Oscillators are bearish and price is below the MA, but the last hour was a hammer candle on the 2- hour chart ,so Cautious approach is needed. Expect a choppy session as the price has not moved out of the Zone 1. Conservative traders should look to be Sidelined until the break out happens while Aggressive traders have to be Cautious . We will keep posted any major changes otherwise stick to our strategy."