Thursday’s break above 1.3325 is significant and could now open the door for additional gains over the coming sessions. The key will be whether the market can in fact establish above 1.3325 and close above the level today. Inability to close above the level will call into question the validity of the latest surge and could suggest that we are seeing another false break (we had seen a false downside break below 1.3325 several days back which showed no follow through). However, should the market establish above 1.3325, we project additional corrective gains into the 1.3600’s where gains should eventually stall. In the interim, stay sidelined and wait for Thursday’s New York close.
--- Written by Joel Kruger, Technical Currency Strategist
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