The pair has convincingly broken out of its sideways trading range to the upside following many weeks of being trapped there. This technical development has opened up risk of further strength towards the 1.6720 level, its Nov 11’2011 high.
Guest post by www.fxtechstrategy.com
A clean break and hold above there will set the stage for a run at the 1.6782 level, representing its sideways range price target. This is established by measuring the height of the range and projecting it from the breakout point.
Above here 91.6782) will call for more strength towards its 1.7039 level, its 2009 high. Its weekly and daily studies are bullish and pointing higher supporting this view.
On the downside, any pullback if seen will target the 1.6365 level, its range breakout point where a reversal of roles as support is expected. Further down, supports stand at the 1.6228 level and then the 1.6164 level.
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