EURUSD – Play the near term channel, to retest range highs
EUR continued to rally after breaking above 1.1300 to the dollar on Friday but the rally fell short of a few pips to 1.1400 and subsequently fizzle off to 1.1358 by NY close. Further upside for the EUR will probably be more of a grind as price trades back towards the topside of the range traders are cognizant of the potential for ECB official rhetoric, regarding ‘more QE if the need arises’.
Price is pressuring the upper end of the recent range the sustained breach of 1.1330 now targets 1.1460 as the next upside objective en route to test the pivotal 1.16/17 range resistance. Look for 1.1280/1.13 to provide intraday support for the advance.
- Looking to play for further upside in the EURUSD expecting more of a grind to the upside, as such will play the near term channel highlighted in the chart below.
- Monitoring intraday reversal patterns on a retest of 1.13 former resistance as support to eventually test the projected ascending trend line and horizontal resistance towards 1.17 . Stopping against a breach of the lower ATR band currently 1.1244.
- Trade supported by bullish Order Flow and an increasing bearish retail bias