Technical Analysis

EURUSD runs to new session highs after FOMC minutes

Upside continues to be explored

The EURUSD continues to probe higher with the pair taking a look above the 1.1550 level (high from October 22nd). The price has moved back down since then – trading at 1.1534 as I type – but the breaks higher today have increased the bullishness for the pair.

Looking at the 4-hour chart above, the price of the EURUSD has been in a “red box” of ups and down. Most of the trading has taken place between 1.1266 and 1.1500. Back in November there was a failed break lower, but the 1.1266 is really the floor level for the pair. 

The move outside the “red box” is significant.  That level is risk for the bulls now (at 1.1500 area).  Closer risk would come in at the the 50% retracement at 1.15144. A move below that level, might give some traders cause for pause and lead toward the more important 1.1500 area.  

On the topside, the next target comes in at 1.1585 (61.8% retracement) and above that 1.1620 (high from October 16). The 200 day MA is at 1.16389.  Today the 100 day MA was broken with gusto (see earlier post). 

Another target on the topside comes in at the 1.16086. Looking at the weekly chart below, that is where the 100 week MA is found.  

Buyers/bulls take full control in the EURUSD with the break outside the “red box”.  Risk is a move back into that box. 

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