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EUR/USD is ticking higher after reaching a 4 month high, and is close to another significant resistance line.  

The decision of the German constitutional court is waiting. A rejection of the ESM isn’t on the cards, but the conditions attached to the usage of the ESM could be strict.

The court is expected to give its long awaited verdict at 8:00 GMT and an upset isn’t expected. See more: All Eyes on Karlsruhe

EUR USD at High Resistance Before German Court Ruling September 12 2012
EUR USD at High Resistance Before German Court Ruling – click image to enlarge

EUR/USD is currently trading at 1.2875, keeping a safe distance from the resistance line of 1.29. It already reached 1.2883. This high ground was reached after the pair made a break about the stubborn 1.2814 line.

If 1.29 is broken, minor resistance awaits at 1.2960 before the really big level: 1.30 – which isn’t only a round number but also served as strong resistance. For more on the euro, see the EURUSD prediction.