EUR/USD Rallies Sharply with 1.32 as Next Resistance

by Admin

Awards 2013

EUR/USD 1H chart 4/30/2013 9:56AM EDT

EURUSD

Breakout: The EUR/USD stalled around a consolidation resistance around 1.31 during the Monday 4/29 session. However, as we get into the 4/30 US session, it is getting a strong push above 1.31 and a resistance pivot around 1.3130. The 1H chart shows bullish momentum as the RSI has held above the 40 level and has tagged 70.

1.32: The next resistance in the near-term is the 1.32 handle, which was the April high, providing resistance on 4/16 and 4/17 for a double top. Will the market be able to push through this level ahead of the ECB meeting for which a rate cut expectation has been in the headlines?

If there is resistance ahead of the risk event, it could come back to test the 1.31-1.3130 area, which would in that case represent the middle of a consolidation zone roughly between 1.30 and 1.32.