EURUSD has stalled at a confluence of resistance around 1.15 but, if recent momentum is anything to go by, an upside break appears to be likely.
EURUSD now trades above the 200 day MA for the first time since June 2014. Friday closed above this milestone and today’s trading has seen the Euro climb to its highest level since February 2015.
At time of writing it has stalled at a confluence of resistance which comprises of the bearish trendline from the May ’14 swing high, 1.15 round number, 138.2% projection and 1.1534 swing highs. Whilst momentum leading up to current levels does favour further gains we could experience volatility around the 1.490-1.1530 zone as trades book profits and bears seek opportunities to fade.
A clean break above 1.1530 resistance then next targets become 1.1590 and 1.60 resistance. A break back below the trendline would deem the breakout as a ‘fakeout’ and raise the odds of a USD reversal.