After several unsuccessful attempts, EURUSD bulls closed the single currency above the confluence of resistance at 1.1440 on Tuesday. This was a possible outcome I mentioned over the weekend as one that would keep the bullish momentum intact.
The 1.1440 area is the intersection of a key horizontal level and the trend line that extends from the August 2015 high. The area held as resistance between the June 29/30th session and July 7th.
With yesterday’s close at 1.1466, I would suspect that any rotation lower into the 1.1430/40 region would attract buyers. We just saw some of these bids push the single currency higher ahead of the U.S. session.
A daily close above 1.1490 would expose the 2016 high at 1.1610 followed by the August 2015 high at 1.1710.
However, today’s session has hit another key resistance level at 1.1490. This is the October 2015 swing high and also served as a pivot between January and February of the same year.
We’re now seeing this level attract sellers as we head into the first few hours of the U.S. session.
But for now, the pair is stuck in a tight range between 1.1430/40 and 1.1490 on a daily closing basis. And as I’m finishing up this post, the pair is retesting yesterday’s open which provides some credence to the false break narrative.
As always, the daily close at 5 pm EST will tell the story. It’s time to see if buyers are willing to support these extended prices or if we should chalk up Tuesday’s move as a false break.
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