The EURUSD buyers are making a play in the US session, with an extension above the ceiling seen over the last few days at 1.0760. The price has moved up to a high of 1.0776.
The pair had been confined to a range between 1.07116 and 1.07601 over the last 2+ days. The range of 49 pips or so compares to an average over the last 22 trading days (month of trading) of around 90 pips. Today's trading range is still only 51 pips from the low to the high. Nevertheless, the buyers are making a play. Can they keep the momentum going?
Taking a broader look at the daily chart below, the price has moved into the swing area starting at the 61.8% retracement of the 2022 trading range at 1.07468 on up to 1.0805 (red numbered circles on the chart below). That area was home to different swing lows and swing highs going back to March, April, May and June before the pair started to trend back to the downside (see red circles 1 to 8 on the daily chart below).
That area will be a key barometer at the start of the new year. Move above 1.1800 area and stay above would add to the bullish bias on the chart and have traders targeting higher levels. Conversely, if willing sellers enter, the high may be in place for the time being at least.
Key area for buyers and sellers.
