EUR/USD: Positioning for a move to break higher [Video]
|EUR/USD
It has been interesting to see how the market has dealt with the initial failed break above $1.1350. Pulling back into near term support around $1.1255 (effectively the mid-point of a near term range) was used as an opportunity as the bulls bounced back on Friday. Ticking higher again today, they are looking to push forward once more to test $1.1350. For a while we have been looking for the breakout of this range to be to the upside and a close above $1.1350 is favoured in the coming sessions. This would then open key resistance of $1.1420 and on towards $1.1490 in due course. This rally has been a slow burn for EUR/USD bulls (and still is) but the market is once more positioning for a move to break higher. The positive medium term bias to momentum points towards buying into weakness, although on a near term basis we continue to see momentum indicators are ranging (daily RSI between 52/61 for the past three weeks). The mild positive bias on the hourly chart has seen the market edging back above $1.1300 which is an initial basis of support today. Thursday’s high of $1.1370 is a barrier.
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