The sharp move higher in the EURUSD has been maintained from a technical perspective. The price range is a mere 43 pips after Friday’s oversized 182 pip move higher. A new high was reached today at 1.2811 in the 1st hour of trading (it always concerns me that the high is reached on the opening of the week). Topside, bull flag resistance comes in at 1.2795 currently. The lower parellel line comes in at 1.2759.
Looking at the daily chart, the price moves above the 50% of the move down from the 2012 high at the 1.2763 on Friday. The low today came in at 1.2768. This is good news for the bulls. The pair has some key resistance targets ahead at the 200 day MA and topside trend line resistance which should make the bullish trading more difficult. The 200 day MA comes in at 1.2838 and trend line resistance off the February 2012 high comes in at 1.2851.
A break above and there should be more momentum higher. The 61.8% of the 2012 range comes in at 1.2933. The 1.2971 and 1.3000 level are other targets. On moves below the 50% level at the 1.2763, look for a rotation toward:
- 1.2745 High from June
- 1.2718 – 50% of the move up from Friday),
- 1.2692 – High from end of June,
- 1.2623 – low from January 2012
- 1.2552 – 100 day MA currently
