The euro rallied to the highest since May 12 during the North American session before pulling back somewhat in Asia-Pacific trading. The catalysts were a successful Greek 26-week T-bill sale and broad risk appetite.
The rally in EUR/USD was a major technical victory. It pushes the pair definitively above downtrend resistance and above 1.2719, which is the resistance from last week’s high. The move also formed a bullish outside reversal candlestick patter. A small pullback will be a good buying opportunity but watch for resistance at 1.2766, which is the 100-month moving average.