After a dip to support at $1.2840, EUR/USD rose above $1.2900 and is now consolidating in the $1.2900/35.
The euro area will release its current account figures at 12:00 GMT. According to the consensus forecast, surplus has narrowed from 16.3B to 14.2B. In addition, the Fed Bernanke’s testimony before the Congress and the FOMC minutes will keep the volatility high during the whole day.
Resistance is at $1.2935, $1.2950 and $1.2990/3000. Support is at $1.2840, $1.2820 and $1.2800.
There’s the inverse ‘head and shoulders’ pattern on H1/H4 charts, so if EUR/USD overcomes $1.2940 and Bernanke sounds dovish, it may test levels around $1.3000.
Chart. H4 EUR/USD