EUR/USD appears to be in a short term squeeze higher, with resistance expected close to 1.2515 and 1.2560.
Should these moves take place, or, if an earlier break under 1.2442 (26 June low) can be achieved, then a substantial extension lower would be expected, targeting the 1.2288 region once again.
The USD Index also appears strong in the short-term timeframe. However, we need to see a break over 82.89 (8 June high) to open up a full retrace to 83.542. This remains our central scenario, with a sustained push over this level then warning of a substantial extension higher.
Failure to hold under 1.2748 will likely target the 1.2900 region at which point our bearish bias will be neutralised.
Daily Technical Report
