The EURUSD found a crack to sink shorts Thursday after ECB President Mario Draghi stated that the ECB would do everything it could, within its mandate, to preserve the euro. This lead some traders to believe that the ECB had overcome it’s aversion to buying government bonds or perhaps allowing some sort of quantitative easing. At the moment the comment is only verbal intervention but it has worked. Spanish yields are down to around 5.30% from 7% only a few days ago.

This news out of Europe helped squeeze traders out of shorts in the EURO. Leading to a run higher of about 180 pips. The pair is now back around resistance that has contained price action since July 6th at 1.2340. And support can be found at past resistance at 1.2180. Any move back to around the 50 fib from Thursdays move around 1.2225 could find buyers looking to push into new highs to end the week.

Sup 1.2225 (50 Fib) 1.2180

Res 1.2180

Keane Insight: Looking for pullbacks or a break of 1.2330.

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