The EURUSD is moving to a new high for the day and in the process is extending above the end of December high at 1.07127. The next target is the high from December 15 at 1.0735.
Moving above that high would take the price to the highest level going back to June 9.
Looking at the daily chart below, a move above the December high would also put the price closer to the 61.8% of the move down from the 2022 high at 1.07468. There is also a swing area from that level up to 1.0805.
That area will be a key barometer in the early 2023 if tested. Will sellers looking for lower EURUSD in 2023 come in and defend the area (add shorts)? Or, will the buyers keep the upside momentum going for the pair.
Sticking to the daily chart, the price low last week did fall below the 50% midpoint of the 2022 range on Thursday but did find buyers near a swing high going back to November and bounced higher.
Staying on the topside of the 50% is more bullish bias for the pair. Another swing area between 1.0594 and 1.0640 was also broken today, increasing the bullish bias.
Overall, the buyers are in control on both the hourly and the daily chart perspective, but there is overhead resistance approaching that will test the will of the buyers in early 2023.
