Technical Analysis

EURUSD pushes the week’s high (and highest high since September 2018). What next?

EURUSD approaches the next key resistance area.

The EURUSD is pushing at the week’s high from Monday at 1.17809. That high ran into a topside trend line and backed off on the hourly chart. The correction was modest (a little more than 38.2% of the last leg higher). The NY session low today stalled at an upward sloping trend line. When the price rose back above the 1.17426 level, that gave buyers more confidence (see earlier post – “Watch the 1.17426 above for close intraday clues. That was a high price in the choppy New York session yesterday. The level also tried to hold support. Get back above and the buyers feel better” ).  

So what next should the highs be taken out?

Looking at the daily chart below, the pair has been on a tear to the upside. The 50% of the move down from the 2018 high was broken at 1.15958 and now looks toward the next retracement at 1.1822. Also around that retracement level are the swing lows and highs going back to May 2018 through September 2018. That area comes between 1.18147 and 1.18504.  

That bigger picture area could be a tough nut to crack on the first look.

We are still 42 or so pips from the bottom of that range (and 78 pips from the high), but it certainly is a hurdle that lies ahead on more upside momentum.

EURUSD on the hourly chart

In the meantime, risk is on the hourly chart now at the trend line at 1.1720 and below that the 100 hour MA at 1.1692 currently and moving higher. Stay above, and the buyers are still in control.  

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