Moves above broken trend line
The EURUSD fell to low of 1.0801 today. The low tested a lower trend line on the hourly chart below. That low was reached after falling below a higher trend line (currently at 1.08428).
The bounce off the 1.0800 support level has now taken the price above the aforementioned trend line at 1.08428 and not trades at a NY afternoon high at 1.0890.
Buyers are showing some life.
Drilling to the 5 minute chart, the price is testing the 38.2% of the day’s trading range at 1.0894 and the falling 100 bar MA at 1.0887. If the price can find some momentum above the 1.0894, there is room to roam higher.
If momentum slows at the 38.2% level, the correction is a plain vanilla one and the downside price action should continue.