Finally a move in EUR/USD? The pair is making a break. Is it for real? Update: it certainly looks for real as the very round 1.10 level has been taken. 1.1015 is the new high.
Just earlier today we talked about the narrowing triangle that closes on EUR/USD and it is finally happening. The timing is peculiar: after a better than expected US figure, the greenback is actually falling across the board.
ADP NFP came out 10K better than expected and with a 10K upwards revision. This was probably not enough: the break was brewing and the naturally bid euro (trade balance surplus) won over the speculation of further easing by the ECB.
The result is on the chart. EUR/USD reached a high of 1.0975 before slipping a bit to the downside, yet it is well over the highs seen in recent days. The round level of 1.10 is a natural point of resistance, followed by 1.1070. Support awaits at 1.0950, with real support only at 1.0780.
We still have another important release today: the ISM Non-Manufacturing PMI. It serves as a significant indicator for the NFP.
More: EUR/USD: Flat Waiting For A Signal, GBP/USD: Inverted H&S – RBS
