The pair has shot through the strong resistance at the 1.0700 region which has been capping the upside for the EURUSD for quite sometime now. We should now see the freed pair move towards the 1.0800 mark easily where it is likely to come under some more pressure from the sellers.
The break through the resistance at 1.0700 has been helped by the FOMC statement yesterday and also the Dutch election results which were favorable for the euro. Technically, we should see a correction towards the broken resistance at 1.0700 before the next move upwards. The daily chart also shows a strong resistance region at 1.0800 next which has been the range high and this should be the target of the bulls next.
We do not expect the pair to move above 1.0800 and we believe that on a bigger scale, we are caught in a range between 1.08 and 1.05 and this should hold the prices for now. The dollar strength,after the rate hike yesterday, should return back sooner or later and then we are likely to see a move back into the range once again.