EUR/USD breaches resistance levels
EUR/USD extended its gains on Thursday, and is up more than half a percent by the time of writing to a high of 1.3185. The pair was buoyed on Thursday by better risk appetite after an Italian bond auction attracted satisfactory demand. Yields on the benchmark 10-yr Spanish and Italian bonds fell on Thursday easing concerns over the debt crisis and lessening the pressure on the single currency.
Price action in EUR/USD surged higher, breaching above resistance levels. The pair broke above the 100-day moving average, by 1.3143 and also the 38.2% fibonacci retracement of the March high to low move by 1.3166. The pair may now run into more resistance by the 50 and 20 DMAs by 1.3208 and 1.3214 respectively, ahead of testing March highs. April low, at 1.3033 provides significant support in the short term, and only a break lower could give scope to a resumption of a bearish trend.
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