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NFP-driven bounce sends price up to historically important level
Yesterday’s bounce saw the $1.1045 support hold up and returned us to the $1.1115 resistance point. We have been watching these two levels for some time, so it is interesting to see this support/resistance zone actually contain price action for now. Clearly $1.1115 is a crucial marker that needs to be broken to continue the bullish momentum we have gained from yesterday’s US jobs report, and given the ascending triangle being created (higher lows, flatlining tops) I favour a break higher.
However, I will await an hourly close above $1.1115 for confirmation of the bullish outlook for the next leg higher. As with the DAX, it is worth being aware on any announcements out of Greece which have the potential to bring volatility to the euro.