The EURUSD took a step up today. Lower yields, optimism, anxious to trade, middle eastern buying whatever the reason(s), the price followed along the 100 bar MA on the 5 minute chart (see chart below), along the trend line, broke above the 1.2384-90 resistance area (see hourly chart) and stepped up to the next resistance area. Finally a BREAK. The market should find support against the BREAK area if the support is there from those buyers who forced it higher. It is as simple as that.
The next target/reistance area is the 1.24279 followed by the 1.2442 level (see hourly chart). The range of 87 pips is still narrow in relation to the 20 day average of 118 pips. There is room but given the apprehension and the Pavlovian reaction to sell high/buy low (in this case selling) there could be the sellers who are salivating at 1.2442. A break should see increased momentum, however. Corrections have been shallow so far today indicative of buying support.
Looking at the daily chart, the 1.24422 resistance is followed by the 1.2515 and 1.2622-27 as the next target levels (see chart below). The holding of the support trend line gives the buyers something to hold on to.
