EUR/USD 1H Chart 12/18/2012 10:58AM EST
Consolidation: The previous EUR/USD update noted the pair consolidating after initially cracking the 1.3170 3-month high. The market pushed it down to around 1.3140 before it found support and started trading sideways. During this consolidation, the bullish momentum in the 1H chart was held as the RSI held above 50. As we get into the 12/18 US session, the market punched above this consolidation, and is breaking the 1.32 handle, with strong bullish continuation momentum in the 1H chart, as the RSI pushes above 70.
At this point, a return back below 1.3150 might be a sign of exhaustion and consolidation, but as the bullish trend progresses, the 2012-high at 1.3487 will be the next key level to the upside.
GBP/USD also pushed higher, after a brief consolidation, with the next resistance pivot at the 1.63 handle (September high). For cable, a break below 1.6190 would be a sign of exhaustion and oncoming consolidation.