EURUSD Squeezed Higher

The EURUSD slid down to trend line support to start off trading on Tuesday then squeezed higher for the remainder of the day.  The cross has respected this trend line since the beginning of the month. Wednesday could be make or break for this trend.  Most market participants are expecting either the introduction of QE3 or an extension to operation twist with the FOMC announcement.  If the committee remains in a wait and see mode the markets will be disappointed.  Heading into Asian and European trading Resistance can be found at the day high near 1.2750 followed by the 50 fib a bit higher at 1.2784.  Support begins at the .382 fib at 1.2667 followed by trend line at 1.26.   The keys to watch for regarding a larger move after FOMC would be for a test and break of trend line support or push higher through the 50 fib.

SUP   1.2667                  1.26

RES   1.2750                  1.2784

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