Is EUR/USD building up steam just under recent peak of 1.3205?

FXstreet.com (Barcelona) - With another light economic calendar for Europe and the U.S. Tuesday, the short-term direction for EUR/USD will likely be dictated by Tuesday’s trading action in the equity and fixed income markets as well as EUR/USD’s own technicals.

EUR/USD may be ready for a breakout attempt at 1.3205 resistance

EUR/USD bulls are patiently waiting for what appears to be an inevitable breakout above the short-term resistance level of 1.3205. It could happen Tuesday as weak economic data flow increases the chance for the most recent trend (higher) to continue – which should, in theory, finally carry EUR/USD through resistance.

EUR/USD has more room to run above 1.3205

Once the 7/11 intraday high of 1.3205 is eclipsed, technicians say to expect an eventual test of key “correction resistance” of 1.3417. Short-term support for EUR/USD is the 7/18 low of 1.3065 followed by the 7/15 closing low of 1.2992. First resistance for EUR/USD comes in at the afore-mentioned 1.3205 followed by minor Fibonacci-based resistance levels at 1.3321 and 1.3364 above that.

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