We were stopped on EUR/USD following a rather dovish FOMC report, which sent most financial markets into a head-spinning range. EUR/USD consolidates towards the upper-end of the post-FOMC range, looking poised to run stops above 1.2650.

Technically speaking, we are out of the September-October downtrend channel, which points to a potential test of our new focus level. .618 retracement and a pair of potentially symmetrical advances (black arrows) indicate a move to 1.2700 could be in the tea leaves. But for now, let's watch to see what develops after the market clears stops above 1.2650 before formulating our next game plan.

Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

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