The last reported big break point at 1.1104 rose and is now located at 1.1126 and assisted in higher EUR/USD levels. The next most important break point to travel higher is 1.1222. The problem with today’s 1.1222 is massive resistance is built into current prices from 1.1221 to 1.1231 and all points in between. If EUR/USD breaks 1.1231 then next target becomes 1.1255.
Why 1.1255 significance is because a break of 1.1255 opens the path to far higher EUR/USD levels to begin at 1.1308, 1.1339 and 1.1371. Yet the 3 month moving line is located today at 1.1382 and is tracking lower by the day.
While current 1.1126 is the point to see EUR/USD lower, minor breaks must first occur at 1.1188 and 1.1164. Upon a break of 1.1126, the downside is located at 1.1079, 1.1045 and 1.1038. The longer range target as of today is located at 1.1084 and fits perfectly in line against monthly forecasts.
The vast majority of today’s trade will center on 1.1221 to 1.1231 because targets are located at 1.1187, 1.1174, 1.1160 and 1.1137. Upon a break of 1.1231 then longer range target becomes 1.1360’s. Yet 1.1221 is not just a significant break point but its also a range break so its import is most vital to see any chance for higher EUR/USD.
Current EUR/USD today is overbought and a break of 1,1221 and 1.1231 achieves far more overbought.
Brian Twomey Inside the Currency Market, btwomey.com