The EURUSD moved to new highs (at least for a moment) and it begs the question what is the next stop.
- The low from April 2nd comes in at 1.3277 seems to be the next target to move above.
- Next, becomes the high trend line on the daily chart (see above chart). This level comes in at 1.3292. The low before the sharp fall on April 3rd, came in at near this area (at 1.3299)
Get through those levels and the price moves into the non-trending range that contained the market between 1.3384 and 1.3300 from March 26th to April 3rd.
On the downside, traders will be eyeing the 1.3242 area as support. This is where the 38.2% of the move down from October 2011 comes in (see chart above). The level is also where the midpoint of the recent intraday leg higher (bull flag breakout) . If this is a breakout of the bull flag (see chart below), the trend higher should continue today. A move below this level would put into question the buyers enthusiasm, in my opinion.
