EUR/USD rally stalls at 200-hour SMA

FXstreet.com (Córdoba) - The EUR/USD stretched to fresh daily highs during the American afternoon after Fed's Dudley said the bank expects to taper QE 'at some point'. The dollar weakened further while stocks extended gains after the comments.

EUR/USD briefly pierced above the 200-hour SMA and reached a weekly high of 1.2933 but lost momentum and pulled back afterwards. At time of writing, EUR/USD is trading around 1.2905, still up 0.2% on the day.

If the EUR/USD breaks decisively above 1.2930, next resistances are seen at the 1.2940/45 area (high May 15/10-day SMA) and 1.3000. On the downside, support levels could be found at 1.2870 (100-hour SMA) and 1.2840 (daily low).