Taking advantage of the thin liquidity in the Forex market on “Black Friday”, the pair EURUSD broke through the key level of 1.18800.
This level was formed on 07.06.2010 and for 9 years !!!!!!! was the minimum of the EURUSD trading range.
This level was also a key level level at the time of the last growth of the pair to 1.20923.
After the false breakdown of support at 1.15744 and considering the weakness of USD after the publication of the FOMC protocols, EURUSD developed an upward momentum and formed an up channel.
Yesterday, the pair on positive data was able to gain a foothold over the short-term resistance 1.18367 (red), which now acts as support. Today, the pair was supported by a high index of business activity index IFO in Germany, which came out 117.5 – the highest value in more than 10 years.
If the pair EURUSD can gain a foothold above the level of 1.18800, we are waiting for an attempt to rewrite the last High 1.20923. A fall below this level will form a false breakdown and send the pair to test support at 1.17120.