It is a little messy technically though...
I spoke earlier of a break of the trend line and wanted to see momentum away from that line. The pair has been confined in a very narrow trading range over the last month. A move above a solid trend line should have been a clue the buyers were taking control.
What we have seen is a sloppy break. Yes the price moved higher but it also has come back down to test that line (and even went back below it). That is not what you ideally want to see. However, each time, the price was able to find a way to rebound and we are currently making new day highs for the day (there were no closes below the broken trend line).
So perhaps the buyers are indeed taking and keeping control. They simply are taking their time? We will see if the momentum can continue and the price can now move away from the broken trend line...
The 1.5649 high from August 5 is being tested. This is also the high for the month. A move above will have traders looking toward the 1.5677. Can the momentum get the pair outside the confined range seen since July 13th? Remember the 265 pip trading range since that time is very narrow. That is often a prelude to a trend like move.
