The EURUSD bulls finally did it. After several failed attempts to breach the 1.0635 area, Friday’s late session surge put the single currency well above the mark.
Yes, there was some profit taking into the close, but that isn’t abnormal especially given Friday’s 130 pip rally. At the end of the day, the pair still managed a close above the 1.0635 handle, which turns our attention higher this week.
With that said, there was a minor resistance level that came into play just before the weekend. The 1.0680 area has acted as a pivot of sorts since January 26th. It also played a role in capping the January 12th advance.
The tight range between 1.0635 and 1.0680 makes playing Friday’s break more difficult. Sure, you could buy on a retest of 1.0635 as new support, but a target of just 45 pips isn’t very appealing.
As such, I’ll stand aside for now and see what comes of last week’s breakout. The close above 1.0635 leaves me cautiously bullish for now, but I need to see more from buyers before I’m willing to consider an entry.
This Wednesday is the highly anticipated Fed rate decision and statement. The events kick off at 2 pm EST and are sure to stir things up for the U.S. dollar, so tread carefully if you plan to take on USD exposure. Also, Draghi speaks on Monday at 9:30 am EST.
Check the upside technical analysis.
Performed by analytical expert: Urban Stamcar
Yes, there was some profit taking into the close, but that isn’t abnormal especially given Friday’s 130 pip rally. At the end of the day, the pair still managed a close above the 1.0635 handle, which turns our attention higher this week.
With that said, there was a minor resistance level that came into play just before the weekend. The 1.0680 area has acted as a pivot of sorts since January 26th. It also played a role in capping the January 12th advance.
The tight range between 1.0635 and 1.0680 makes playing Friday’s break more difficult. Sure, you could buy on a retest of 1.0635 as new support, but a target of just 45 pips isn’t very appealing.
As such, I’ll stand aside for now and see what comes of last week’s breakout. The close above 1.0635 leaves me cautiously bullish for now, but I need to see more from buyers before I’m willing to consider an entry.
This Wednesday is the highly anticipated Fed rate decision and statement. The events kick off at 2 pm EST and are sure to stir things up for the U.S. dollar, so tread carefully if you plan to take on USD exposure. Also, Draghi speaks on Monday at 9:30 am EST.
Check the upside technical analysis.
Performed by analytical expert: Urban Stamcar