Forex technical analysis: EURUSD trades at highs. Eyes topside trend line.

Technical Analysis

Author: Greg Michalowski | eurusd

Extends above last weeks high

The EURUSD has just moved above last week's high at 1.1901. The price is not racing on the extension - the high reached 1.1904 so far - but buyers are pushing the price higher. Like the GBPUSD, the low was in the Asian session, and the price has had a more bullish bias for the day.

Looking at the daily chart above, the pair is approaching a topside trend line at 1.1914. That line connects highs from September and November.  A move above that line would look toward the December high at 1.1940 and the November high at 1.1960.

Drilling to the hourly chart below, the low in the Asian session did hold a trend line support line. The market then seemed to use the 100 hour MA (blue line) as a support. The price moved away from that MA line. and above a ceiling at 1.1878. The price traded above and below that line but then used it as a base for the last leg higher.  Remember the 1.1876 was the swing low going back to June 2010 (not shown).   That area is now a risk level for longs. Stay above is more bullish. Move below is more bearish.