Pair broke above its 200 hour moving average and moved higher
The EURUSD was another pair that was mired between support and resistance earlier in the day and looking for a shove (see post here). The topside resistance was against its 200 hour moving average (green line) at 1.08978 currently. The downside support - which was tested earlier in the day – was at 1.08452 (blue line). Between was a swing high at 1.0887 area.
There was a 3 step process for further upside momentum including:
- Step 1. Getting above the 1.0887 level
- Step 2. Getting above the 200 hour moving averages
- Step 3. Getting and staying above the 38.2% retracement at 1.09124.
All 3 of those targets were taken out. The high price extended to 1.09447.
The next step/target would be the 50% retracement at 1.09571. Close risk for traders looking for more upside would be the broken 38.2% retracement at 1.09124 or the 200 hour moving average at 1.08978 currently. Stay above those levels and the buyers still have the control at least from it intraday/shorter term prospective (with the 50% level as a key hurdles to increase the buyers bias.