When the days range is 40 or so pips, it is hard to get too excited about it from a trading perspective. What we can say is the pair has kept most of the gains on the move to the Friday high. The decline today also did not reach the low floor on the hourly chart at the 1.62099 area (low reached 1.6219). On the topside, the price is currently testing the 1.6254 level. A close above this level today will make it the highest close since August 2011 (see post from yesterday by CLICKING HERE) and should solicit more buying. The 1.6299 level is the highest price traded in 2012 and would be the next target. Above that 1.6314 is the topside channel trend line area.

With the range so narrow, a sneeze and the price can take out the highs or take out the low. However, the failure to move materially lower today, keeps the bulls in charge.