EURUSD extends toward the June highs
The EURUSD move yesterday after the FOMC stalled ahead of the 100 day MA AND the 50% retracement at the 1.12618 level.
Today the 100 day MA stepped a bit lower but the area remained a key level to get above if the bullish bias was to continue. Also in the area was the falling 200 hour MA (green line currently at 1.12637) increasing the 1.1260-65 areas importance.
That cluster of resistance was broken. There was some consolidation before basing against the key 100 day MA (blue line at 1/12596) before taking off on another run higher. The price reached 1.13148 so far
The move to the highs has breached a swing area at 1.12995-1.1308 (see yellow area in the chart above). Traders may just use the 1.1300 araa now as close support. Another support level is the 1.1289. Stay above each and the trend higher is still in play with traders. Move below and the waters get muddy.
Ultimately the 1.13084 level needs to be broken and remained broken to have traders eyeing the June highs at 1.13428 and 1.13469 (down the road).
As I type, the 1.1300 level has been breached a little more with the price trading to 1.1295. Watch the 1.1289 level now.
Looking at the daily chart below, in addition to the highs from June the 50% of the move down from the January high (range for the year) comes in at 1.1338. The 200 day MA comes in at 1.13524. The price of the EURUSD has not traded above the 200 day MA since May 2, 2018
