The 1.2442 level found early sellers at 1.2439 (see earlier post by CLICKING HERE). However, the selling was brief and the price has surged higher on the break.
The day has not really seen much in the way of a correction as London traders look toward exiting. The range for the day is up to 148 pips above the 118 pips that has been the average for the last 20 trading days. The trend continues.
The last time the market was at this area was on July 5th. On that day, the price broke on a move below the 1.2492 level. Above that a better target is the 38.2% of the move down from the May high (see daily chart). This was the start of the trend month down in May that saw the price shed over 1000 pips.
The 38.2% retracement level comes in at the 1.25152 level. Can we get up to that level today? The market has been coiling like a snake over the last few weeks. The market got the break today and has the taste of a trend move. I will be watching the 1.2452 level (38.2% of the last leg to the upside) for buyers. Stay above and a rotation higher can occur.
