EUR/USD Breaks Loose after 2 Days of Rock 'Em Sock 'Em News (FXE)

September 7, 2012 11:22 AM EDT Send to a Friend
The EUR/USD broke the top of its upward trend channel pattern today, crushing resistance and ramping to 1.28. The cause of today's spike isn't a secret to FX traders or to anyone on Wall Street. A combination of events, including comments yesterday by ECB president Mario Draghi, along with disappointing jobs data, set EUR/USD up for a ballistic rally on Friday.

Traders noted resistance near the entry to the 1.2700 handle, but it provided little opposition for the Euro, which has racked up 750 pips since late July. Traders say there could be another grouping of minor resistance bunched around 1.2800, but technicals point to a target of 1.3000, a level that supported priced before it was breached in May.

The related ETF, CurrencyShares Euro Trust (NYSE: FXE), is higher by 1.50 percent intraday.




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