Looking a little irresistible this morning with the surge through 103.00 earlier and buy stops tripped up through 103.50, accelerating to 103.70. It’s helping to underpin the EUR/USD which is shrugging off mixed comments out of Spain over any possible bailout..
The pairing’s well clear of the Ichimoku daily cloud now (top 101.30) with 104.00 (Nov 1 highs) in it’s sights. A break here opens a move to the Oct 23 highs of 104.58. There’s likely to be some optionality up at 104.00 (barrier?) with likely buy stops just above, but the cross is also heading into overbought mode on the hourly RSI and we could see some pause in the near term..
On a longer term outlook , looking at the fall from 111.43-94.12, there’s a 61.8% retracement level of the move at 104.81/82, which is just inside the base of the ‘weekly’ Ichimoku cloud starting from 104.77 up to 107.47
Offers now 103.90/00 with bids expected to re-gather down around 102.80/00.
The cross sits presently around 103.58