The euro vaulted to its highest level against the dollar in a week as stops situated above the September 4th and 5th highs of 1.3218 and 1.3223 were triggered at the first approach. Initial reaction was very swift, in two minutes the united currency climbed from 1.3220 to 1.3243 and within 30 minutes it reached 1.3263. Buying around the London close at noon further enhanced its value to 1.3281.
The level has served as a rough dividing line for much of the last ten months. The division has not been strict enough to make it a firm technical level for that entire period but the great majority of price movement since late last December has been either above or below the 1.3200-1.3225 band.
No doubt that added emphasis to today's more technical stop execution.
Chief Market Strategist