• The EUR/USD trades higher on GDP data
• breakouts begin over 1.0887
• Today’s EUR/USD range measures
The EUR/USD is rising this morning with Euro-Zone GDP figures being released in line with expectations at 1.6%. Prices are now attempting to breakout to a new high this week over today’s R4 which is found at a price of 1.0886. Traders looking for a breakout should note that current SSI figure (Speculative Sentiment Index) for the EUR/USD is printing at -1.348. While this value is not extreme, it does show that net positioning is currently short the EUR/USD . When used as a contrarian signal, traders may use SSI as a confirmation for a continued move towards higher highs.
Traders looking for a price reversal should continue to monitor the R3 for today at a price of 1.0860. A move back to this value would signal a shift in the current market environment and would open up the EUR/USD to return towards values of support. It should be noted that today’s trading range measures 50 pips and that the S3 currently resides at a price of 1.0810. Also, a complete reversal may begin underneath the S4 which is found at 1.1.0785. A move below S4 support would be significant as it would be the EUR/USD’s second attempt at a breakout since Fridays 464 pip advance.