EURUSD looks ready for another leg higher.
The pair has been hovering just below key resistance near 1.2170 since December 3rd.
As Daily Price Action members know, a market churning below a key level for weeks is a bullish sign.
And it’s no surprise to frequent readers that I’m bullish on the EURUSD.
I’ve discussed multiple bullish scenarios for the euro since July.
The breakout in July triggered a 670 pip rally.
Then came the break above 1.20 on December 1st.
I was already long the EURUSD in anticipation of that breakout, as DPA members know.
One reason I’ve been so bullish on the euro has to do with the monthly chart.
As many of you know, the EURUSD broke out from a multi-year symmetrical triangle in July.
After a period of consolidation that ended with the December 1st close above 1.20, the pair was ready for its next leg higher.
Last weekend, I mentioned how EURUSD needs to climb above the 1.2150/70 area on a daily closing basis.
That would open the door to the 1.2330 area.
However, there are two uncertainties as of this writing.
One is technical and the other fundamental, but they go hand in hand.
First, we have a Fed rate decision and statement today at 2 pm EST.
The statement and following press conference at 2:30 pm EST are likely to impact the market, so that’s worth keeping an eye on.
Second, I need to see EURUSD close a day above 1.2170.
Remember that I use New York close charts provided by Blueberry Markets, which means each daily candle closes at 5 pm EST.
Until the euro clears 1.2170 on a daily closing basis, this breakout is speculative.
My target remains 1.2500, which I first announced on October 21st.
Disclosure: I hold a EURUSD long position.