Another example of why you buy the break
On Monday the euro attempted to break 1.20 but was quickly beaten back down and closed at 1.1927. All that did was highlight the importance of the level, which also halted the advance in September.
A day later the bulls regrouped and busted through the level in a big way. That's been followed by two more days of strong gains as the US dollar struggles across the board.
Given that the tech's appear to be in charge here, there's on clear resistance until the 2018 wedge in the 1.2350 to 1.2555 range.
More broadly, the US dollar is under pressure now almost daily. There's the occasional dip but they're increasingly shallow. Perhaps when 10-year yields break 1% we get a deeper retracement but I don't see another obvious catalyst.
