The pair continues its march higher on the day, up to 112.69
The 112.70 level is a minor resistance point right now, as the upside move during the last hour stalled here. It coincides with the 30 Nov and 5 Dec rejection points¹.
Meanwhile, to the upside there's a bit more resistance levels nearby sitting at the 5 Dec high² of 112.87, and the 4 Dec high³ of 113.09. But in general, the 113.00 level should provide the next level of strong resistance should we make a move there.
The slight jump in the last hour coincides with the breaking of the downward sloping trendline from 4 Dec to 5 Dec - and also a firm break of the 100-hour MA.
European equity markets are generally in the green now with Eurostoxx, DAX, FTSE, CAC40, FTSE MIB, and Ibex indices all higher on the day so far. That's a vast improvement in sentiment in the equities market.
Meanwhile, slight dollar strength across the major bloc is also helping to keep the pair bid for now.
I prefer to trade this on the daily chart as it provides a clearer picture, as the topside resistance of the 23.6 retracement level at 114.54 is the key one the pair must break through. It's been rejected three times since May. Meanwhile, on the bottom side of the range the 108.00 level is one that the pair must break away from to trend lower.
As we're closer to the topside of that 108.00 to 114.54 range, I'd sell on rallies if I get the chance when we move higher to the upper bound of the range.
