The BOE does nothing as expected. No comment. ECB to come.

From a technical basis, the pair is keeping the gains from yesterday and extending to new highs on the day in early NY trade. The reality is:

  • The range prior to the current move higher is a measly 26 pips (and now 31 pips – whoopee). So although the price is extended, it is not far from the low either. The 100 and 200 bar MA on the 5 minute chart is at 1.5902-04 area. Stay above keeps bulls stay in charge (if you can call it that)
  • There is an intraday low floor at 1.5895 with a number of lows in the area (including the bar just below the decision). There was a singular push below that floor in the Asian session that tested the 38.2% of the move up from yesterday but that failed.
  • The 61.8% of the move down from the 2012 high comes in at 1.5905 (bullish with price above – see chart below).

The range will have another extension outside the range today. I would expect traders to wait for ECB decision and comment reaction and go with it. The bias into the decision is positive. That does not mean a lot with the jittery market and market moving news. If the move higher and the break above the 1.5905 retracement level is real, there should break higher. You know what that means if it fails.