Technical Analysis

EURUSD backs off from hourly channel trend line after accelerating higher today

Move higher accelerated higher today.

The EURUSD has accelerated its run higher today. The pair in the Asian session broke above a flatter topside channel trendline 1.1669. 

The 1st corrective low after that break stalled against the underside of that same trendline. That gave buyers the go-ahead to take the price higher. 

In the last few hours, the pair has tested the steeper topside channel trendline around the 1.17810 level. Sellers have taken some profit against that level. 

Why not? 

The pair has a 142 pip trading range. The average over the last month is 81 pips.  The pair was trading up 125 pips at the highs for the day. We currently trade up about 100 pips. The real reason however is that there was a level to lean against. Stay below and we could see a further correction back down toward the lower trend line. Move above and reestablish the longs as the trend higher continues.

Taking a broader look at the daily chart below, the next targets on the topside come between 1.80147 and 1.18504. Those levels correspond with swing highs and lows going back to may, June and September 2018. In between that swing area is the 61.8% retracement of the move down from the 2018 high to the 2020 low. That level comes in at 1.18221. The high price today reached 1.1781. The price is still a bit a ways away from those levels, but keep them in mind as the week progresses if the trend can continue.

EURUSD on the daily chart..
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