Forex Technical Analysis: EURUSD unfazed by talk of 25 stress test fails via ForexLive

The EURUSD is trading at new highs despite the Bloomberg report that 25 banks have failed the stress test (SEE Ryan's report at ECB draft doc says 25 banks to fail bank tests).   I should say, there was a dip but the price has bounced back and with the very narrow trading range, it does not take much to make a new low or a new high. The high is the squeeze of choice.

The high yesterday came in at 1.2675. The underside of the broken trend line comes in at 1.2685. The 38.2% of the weeks trading range comes in at 1.2700 (really 1.26995)  and the 100 hour MA comes in at 1.2704.     I expect that sellers will line will look to defend the underside of the trend line. So look for sellers leaning against there (it worked yesterday).  If the price breaks higher, the market will probe the other upside levels including the 38.2% and 100 hour MA (blue line).

The underside of the trend line will be eyed.

posted via ForexLive