G7 concern sees Euro profoundly weak against U.S. dollar.

The dollar jumped against the euro on Monday after the Group of Seven nations surprised investors by expressing concern about sharp swings in major currencies, although traders were skeptical about the chances of any imminent intervention.

Fundamental
The dollar jumped against the euro on Monday after the Group of Seven nations surprised investors by expressing concern about sharp swings in major currencies, although traders were skeptical about the chances of any imminent intervention. In a nod to European leaders who have voiced dismay over volatile currency markets that pushed the euro to record highs against the dollar last week, the G7 on Friday issued its strongest expression of concern in more than seven years. In their post-meeting statement, the G7 nations abandoned their long-standing language on currencies and suggested they were worried that sharp currency moves could undermine economic and financial stability.

Technical
The EUR/USD was trading heavily between 1.5600/50 before the official 5 AM Sydney open after the G7 surprised the market by significantly changing the wording of the communiqu regarding FX. The communiqu said that recent fluctuations in major currencies raised their concern about "implications for economic and financial stability" and suggested to many that they would jointly intervene if the USD fell sharply from current levels. The EUR/USD traded at 1.5658 after the official open before racing back up to 1.5729 when various analysts suggested that the reaction to the G7 event would be short- lived and there was no threat of intervention at current levels.

EUR/USD (Daily Chart)
The primary tendency remains bullish, starting from 11 February 2008

EUR/USD (4 Hour Chart)
The pair continued the uptrend and reached 1.5896

EUR/USD (Hourly Chart)
The Minor trend shows us a failure swing formation.

Resistance
1.5850
1.5805

Support
1.5670
1.5560