The days range is up to 44 pips.
The EURUSD has extended to new session highs in the last few minutes of trading. The pair has extended the trading range to 44 pips in the process. That is still well below the average over the last month of trading at around 100 pips. Chrysler Fiat sales were better - that does not really support the move. Stocks in the US are getting worse pre-market. Anyway, when you are in a 37 pip trading range as NA traders entered for the day, there isn't that much to do to make a new "something" (high or low). The EURUSD is making a new high.
Technically, the pairs climb brings it closer to a resistance ceiling level near the 1.0939-457 area. The pair has been above that area on 4 separate occasions going back to Dec 29. Each failed. The last time was last week. The market is getting used to the ups and downs but also the failures. The 100 day MA is stepping down into the picture as well. It is down to 1.0970.
What now?
We are making new highs. The range is narrow. There is room to roam. There is key resistance ahead. If that is broken it should make life easier for the buyers but then again all rallies above fail and the 100 day MA is up there too, but it is a trading market in the pair. So just follow the roadmap. If we get above a resistance target, look for the next high. Get above it and look for the next. Then the 100 day MA. That is a different story. We have not been above the 100 day MA since October 22.
Where is risk? The 5 minute chart tells that story (see chart below).
