Can the ceiling be broken
The EURSUD opened lower but quickly found a bid and moved higher. THe early European trading saw a dip back below its 100 hour moving average, but could not sustain momentum. The London morning session saw buyers lead the way as "risk on" flows led to dollar selling and buying in other currencies including the EUR.
The move higher has taken the price to the high price from last week which peaked at 1.1769. The high price today has so far reached 1.17688, but short of that high. We currently trade just below that 1.1760.
A move above that level should open up more buying, but be aware that there is additional resistance at the 61.8% retracement of the move down from the September 21 high. That comes in at 1.1772 and just above that level is the swing low and swing hi from September 21 at the 1.17748 level.
So look for those levels to be taken out as well in order to open the door for further upside momentum technically.
On the downside there is a swing area from last week between 1.17508 and 1.1757 (see green numbered circles. The current hour we bar has been able to stay above that area. More conservative support risk for traders looking for "risk on" buying in the pair to continue would eye the 50% retracement at 1.17415 level
Taking a broader look at the daily chart below (see post from last week for the setup), the price low today did stall within the swing area between 1.1695 to 1.1710. On Friday that level also held support and as a result, gives the buyers some hope.
On the topside however, the downward sloping trend line cuts across at 1.1768. That corresponds with the high from last week and the high from today (at 1.1769). That gives the sellers something to lean against.
The combination of resistance on the hourly and daily chart at the same level (using different technical tools) increases the levels of importance for the longer-term and intermediate-term market traders. It is a key barometer today and going forward.
