Key resistance in the 1.4270/80 area was overcome earlier in the day and EUR/USD has been as high as 1.4317. 1.4260/80 is now significant support on pullbacks.
Having grabbed the brass ring in the run-up to the ECB meeting tomorrow, one has to wonder how much more topside is left in the pair near-term. Seems like a high risk of the a “buy the rumor/sell the news” reaction, especially if the ECB hikes 25 bp, as expected. That was the case back in November when the Fed officially announced QE2, though there was a one day lag before the selling began in earnest.
Barriers are rumored at 1.4325 and 1.4350 near-term. Medium-term bulls are targeting the January 2010 highs at 1.4557.
