Correction holding above the the 50% of the move higher
The EURUSD surged higher on the worse than expected US retail sales. The price on the 4-hour chart ran up and found sellers against the underside of the broken trend line (see chart below). This level comes in at 1.0627.
The correction lower did find support buyers in the 38.2 to 50% retracement area. The prior high for the day was also a support at 1.0593. So overall, the buyers remain in control after the weaker than expected data.
As I post, the EURUSD is breaking to new highs. The next target will come in against the 100 hour MA (blue line in the chart below). That level comes in at 1.0655. The high from Friday's trade comes in at 1.06835. This too would be a resistance target. The 38.2% of the move down from the April 6 high comes in at the 1.0717. This level is also near lows from March 31 and April 1 so the level should be a tougher level if tested. Admittedly, this would be a stretch for the day, but could be a target going forward.
Buyers have taken control. Watch the corrections. Holding above the aforementioned retracements from the 5 minute chart (adjust for new highs) are risk defining levels for the buyers now.
