EURUSD takes the EU reconstruction plan positively

Technical Analysis

Author: Greg Michalowski | eurusd

Price moves above the high from last week

The EURUSD is taking the construction plan from Macron and Merkel positively. The price has now moved above the high price from last week at 1.08957. The price is also moved above the 50% retracement of the move down from the May 1 high to the May 7 low. That level comes in at 1.08920.  Swing levels between 1.08845 and 1.08961 have also been breached.

Price moves above the high from last week_

However in the last few minutes, the price has dipped back below that resistance area (see yellow area).  So there is some apprehension against the high (or at least some profit-taking).

Recall, the EURUSD had a 28 pip trading range coming into the North American session. The range is now up to 101 pips. That is above the 78 PIP 22 day average (about one month worth of trading).  See earlier post on the EURUSD outlining the room to roam. The resistance and the now oversized range may give traders cause for pause(may see some profit taking) with a stop on a break of 1.0896-1.0900 area.

PS, the German DAX has surges 5.8%, while the France's CAC up 40 is currently up 5.3%.

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