The pair has rallied from a low of 126.88 to a high of 127.47 on the day so far, expanding the 2021 breakout in what will be a fourth consecutive bullish close.
However, the price is meeting a weekly resistance line and is expected to correct back to support phase according to the overextended W-formation on the daily time frame. With all, and while a pullback is expected to occur, it is a matter of timing.
At this moment, the bulls stay in control according to the 4-hour chart with the MACD above zero and the price breaking through the London highs and away from the 10 moving average.
The price needs to break below the old resistance that can now be considered as support.
At that stage, there is a higher probability that the daily support will draw in the bearish commitments from weekly resistance.
Today we have various low impact Euro area economic announcements like the German and French monthly consumer spending and monthly industrial production. Also, in the afternoon traders are going to be watching the US NFP number.
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