EUR/USD Technical Highlights:
- Looking for the breakout to sustain
- Bias remains constructive above 11700
- Resistance at 11852, then 11900/2000 targeted
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On Thursday, the euro finally made some headway out of the congestion it’s been stuck in during the past few weeks. The breakout turns the once-viewed resistance area in the low to mid-11700s into support, and as long as price stays above the outlook is favorable for another leg higher.
A break below 11700 would put price back inside the choppiness the euro just came from and at the least be a caution signal for longs, if not turn the tone outright negative. At that juncture, we would be inclined to stand aside again as market conditions turn unfavorable for momentum to develop in either direction.
As long as we see support hold, expectations are for the big swing-high from June at 11852 to get tested, if not broken in the week ahead. Looking beyond 11852, the 11900/2000 zone will be targeted. We’ll watch price action closely at that point for signs of momentum stalling.
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EUR/USD Daily Chart
EUR/USD 4-hr Chart
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at@PaulRobinsonFX