The BOE rate decision and surge higher in the GBPUSD, has taken some of the attention away from the euro issues and the EURUSD has rallied off the lows as a result. The range for the day is still quite narrow at 45 pips (double top at 1.29668) so I expect an extension one way or the other. It would seem the upside would be the way but anything is possible with the concerns out of Europe still fresh.
From the bullish side, the price is staying above the 1.2952 level which represents the 61.8% of the 2012 range. Staying above this level (down to 1.2945 which is the midpoint of the days range – see chart below) would likely solicit more buying with 1.2972 (low from Feb 16th) and 1.2992 (low from April 16th) the next upside targets for the pair.
Looking at the hourly chart below, the 100 day MA comes in at 1.3000 level currently. The price of the EURUSD has not been above this MA since May 2nd. If the bullish bias can continue today, this would be a key resistance level and test for the pair.
On the downside, a move below the 1.2945 level would likely not be welcomed by longs. This should lead to some further selling. The close from yesterday at the 1.2927 and the double bottom low for the day at 1.2923 (give or take a pip) would be the next targets.
Double bottom, double top. Pick your poison. Look for a break with momentum on that break.
