EUR/USD Awaiting Breakout from a Small Range

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EUR/USD Awaiting Breakout from a Small Range

Since the bearish reaction to ECB’s QE announcement, the EUR/USD has been resilient. Let’s take a look at the charts to assess the technical set up.

The EUR/USD rebounded to 1.15 and has been holding above 1.13 even after the strong NFP report on Friday, which gave the USD strength across the board. It did extend lower to start this week, and is now trading between 1.1275 and 1.1350.

A break above 1.1375 would put the EUR/USD above this range and back above the 200-, 100-, and 50-hour SMAs. This would expose the 1.15 high with risk of further bullish correction.

However, if price falls below 1.1275, it could revive the prevailing trend and put pressure on the 1.11 low with risk of extending lower towards the 1.10 handle.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.