The EURUSD has broken above the 1.2701 area on the belief the Fed is turning a touch more dovish on slower global, and concerns about the effects of the strength of the US dollar as it relates to inflation. The price has surged above the 1.2701 level outlined in an earlier post (EURUSD Technical Analysis: Should go lower, but… (Part 2) and looks toward the next key resistance area.
EURUSD looks toward next key resistance – 2013 lows.
That area comes in at the 1.2747-56 level where the lows from 2013 are found (see daily chart below). The 50% of the move down from the September 16th high and high prices from September 16th. I would expect that a move toward this level will attract sellers on the first look. A break above could ignite more stops however.
Action remains volatile. Support will be eyed on dips toward the 1.26885 area now. This is the 38.2% of the move down from September 16th, and the recent topside trend line broken on the move higher (see hourly chart above).
The EURUSD lows from 2013 came in at 1.2746-57. The price should find sellers against this level.