The EUR/USD Breaks to New Weekly High
(Created using Marketscope 2.0 Charts)
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The EUR/USD is attempting to breakout higher this morning above resistance found at 1.1264. As of today, the pair has already advanced as much as 212 pips for the week, and appears poised to continue its bullish trend. By extrapolating 1-X today’s 70 pip range, initial bullish targets for the day EUR/USD begin near 1.1334. Longer-term traders may also begin looking forward to prices challenging historical highs. This included the October 2015 swing high at 1.1495.
In the event of a daily bearish price reversal, the EUR/USD will first need to decline back inside of its trading range, which begins at 1.1228. This area is represented on the chart by todays’ R3 pivot, and a move here would suggest a change in market conditions. At this point, traders may consider this morning’s breakout invalidated. It should be noted that key values of support for the day include the S3 pivot point at 1.1168 and the S4 pivot at 1.1121.
SSI (Speculative Sentiment Index) for the EUR/SUD reads at -1.99. While this value is negative, and is just short of an extreme reading of -2.0 or greater. When read as a contrarian signal, current EUR/USD SSI reads as a bullish signal for the currency pair.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.