EURUSD reaches target key resistance

The target resistance at the 1.2857 and 1.2866 area is being tested. The 1.2857 was the low from 2011 and the 1.2866 is trendline resistance.  As mentioned earlier the level should attract profit taking sellers.  A break however, opens the door for further gains to the upside.   The EURUSD has been on a downward track since October. If shorts have a reason to buy (and a break of this resistance as good a reason for a while) there should be some follow through buying.

A move back below the 1.2840-45 is needed to convince the sellers the buying is over.  Energy developing.

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