EUR/USD Retest of Range Breakout

Good afternoon traders,

After breaking out of the following EUR/USD range, the pair has since pulled back to retest the broken resistance level this time as support:

EUR/USD Daily:

Click on chart to see a larger view.

The NFP release on Friday was a nice beat of expectations, with 209,000 jobs created in July, versus a consensus of 183,000. Average Hourly Earnings also saw a 2.5% increase on a YoY basis versus the 2.4% consensus.

This was exactly what the US Dollar was looking for to bounce out of USDX support and as a result, bring EURUSD down with it.

EUR/USD Daily 2:

Click on chart to see a larger view.

This next chart is the same daily chart as the first, but just zoomed in a little deeper to more clearly show the candles.

You can see a confluence of both the daily range top, as well as a pause in the bullish move that price is reacting to. I’ve marked both levels on this chart and the way this last candle spiked down into it and then closed higher is a good sign for a further bullish move on EUR/USD.

Now we’ve broken out of the hugely significant daily range, the bulls aren’t going to give up the momentum they’ve worked so hard for on a single NFP reading… are they?

Best of probabilities to you!

Dane Williams – @VantageFX

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Source: Vantage FX Blog