Looks to take out 1.1300 (?)/post US election high
The EURUSD, on the back of more hawkish comments from ECB Draghi today, is looking once again toward taking out the post US election spike high from November at 1.1300 level. The pair this month has a number of peaks between 1.1282 and 1.1295. Each time, sellers entered.
With the market trending higher today and buyers firmly in control, will today be the day for the break higher? Although the range for the pair is extended above the 22 day average at 104 pips vs the 22 day average of 64 pips, trends are fast, directional and tend to go farther than traders expect. Give the trend move the benefit of the doubt until proven otherwise.
Nevertheless, traders will lean as close to the risk defining level (at 1.1282-1.1300) and either take profit from longs, or just anticipate a peak and retracement against the key level. The caveat for those low risk traders is they will put stops on a break above the risk defining level. A key rule in trading....don't mess trading against a trend move for too long especially on a break. There is always another trade.
The high just reached 1.12835. If the trend buyers are to keep control and make a run for the ceiling hurdle, look for the correction to be shallow. Watch 1.1265-69 now - the 38.2-50% of the last leg higher in the pair (from 1.1246- 1.12835).
