EUR/USD: decisive closing breakout above $1.1100 is the most important [Video]
|EUR/USD
Getting on with life in a post Brexit world would clear sit well with the euro. Another solid and strong positive candle has taken EUR/USD through a series of resistance levels in recent days, but the decisive closing breakout above $1.1100 is the most important. This clears the September high which takes the market to a new seven week high, but more importantly clears the first key lower high of the mid-year sell-off. This is an outlook changing move now. There is plenty more old resistance and overhead supply for the euro to overcome but for the first time in months, the outlook is looking positive. Momentum is increasingly positive (RSI into mid-60s, MACD lines close to pushing above neutral and Stochastics rising above 80). Furthermore, moving averages are turning around. The market is a becoming a little stretched near term and how the bulls react to any adversity will be key. The breakouts this week are supportive, initially at $1.1100 and then $1.1060 and the key higher low at $1.0990. The euro is a buy into supported weakness with a view to testing further resistance at $1.1165 and the next key lower high at $1.1250.
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