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The EURUSD is once again on a tear. After beginning the week with a pullback into the 1.1930/40 support area, Euro bulls have catapulted the pair higher by more than 200 pips.
Friday’s surge gives us a new multi-year high. We have to go back to December 2014 to find the last time the EURUSD was trading above 1.2100.
However, today’s rally also puts the confluence of resistance at 1.2150 in focus for next week. I mentioned this area on January 4 and again over the weekend.
The 1.2150 area is the intersection of channel resistance that extends from the November 2017 high and a region that served as key support between May and June of 2010.
On top of that, 1.2165 is the 50% retracement from the 2014 high at 1.3993 to the 2017 low at 1.0340.
Now, this doesn’t mean the EURUSD is about to selloff or that I’m interested in selling. There’s far too much bullish momentum at the moment to warrant that kind of talk, not to mention a lack of bearish price action.
This is merely an area of resistance to keep an eye on as we head into next week. And if the EURUSD closes today’s session above the 1.2070 handle, the level will likely attract buyers if tested.
While it doesn’t appear likely, if the single currency closes today back below 1.2070, we could see a return to the 1.1930 area next week. But as of now, it seems Euro bulls have other intentions.
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