There was an incredibly strong day yesterday for the euro. With a daily range of well over 200 pips there was a gain of almost 150 pips which took the pair through several key resistance levels. The old levels of $1.1035, $1.1050 and even $1.1100 did little to hold back the move which came after the disappointing GDP data was released. It was interesting that the FOMC announcement in the evening took a little of the shine off the breakout, but technically the day was still very strong. Has this been a big game changing day? Whilst the key resistance were taken out easily I think the test will be on a correction. For this not to be a false upside break the old resistance now needs to hold as support. So $1.1035/50 is now a key support area today. The intraday hourly chart shows the reaction low of $1.1074 after the FOMC will also be supportive. The recent bull run over the past week has also taken support at the 55 hour moving average (currently $1.1000). The bulls will be eying a move back above yesterday’s high at $1.1187 to continue the run higher.
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