The EURUSD continues to knock on the resistance door. The price moved above the end of June high at 1.2746, above the 50% of the move down from the the 2012 high and on closer inspection is banging against resistance at the 1.2771 (see chart above). There is cause for pause against this level but the corrections to the downside have been slight with the low corrective print coming in at 1.2753. A move below the 1.2746 would be needed to show sellers are taking some control back. A further move back into the broken channel at the 1.2737 (also 50% of the last trend leg higher – see chart below) would be another step for a further correction potential. Needless to say a third break above 1.2771 may be the what the bulls will need.
