In my last post on the EURUSD, I said:
"Looking at the hourly chart, the price bounce moved back above the swing low from Monday, Wednesday and yesterday and the swing low from last week. That area comes between 1.0653 and 1.0668. The price is back in that swing area. Can the 1.0653 level now hold support in the short term? If so, it is up to the 100 hour MA at 1.0699 (and moving lower). The 200 hour MA is at 1.07085."
As London/European traders head for the exits for the weekend, that scenario has played out.
Looking at the hourly chart above, the move higher off the low was able to get to and through the swing area between 1.0653 and 1.0668. It was then able to hold support against 1.06532 on the correction. The low correction price moved to 1.0656 (3 pips above the 1.0653 level) and restarted the move to the upside.
The high price just reached 1.06917. The next key target is the 100 hour MA at 1.06996 (call it 1.0700). Above that, is the 200 hour MA at 1.07082. Move above that and a swing area between 1.0707 and 1.07243 would need to be broken.
..the sellers pushed lower earlier today and reached a target on the daily at 1.0615 (see prior post here). The buyers came in. The price held old lows and the the sellers turned to buyers.
The key targets now will be to get and stay above the 100/200 hour MAs. The 200 hour MA stalled the rally yesterday. That not only gave the sellers joy, but it also increased the levels importance going forward.
Be aware. Be prepared.
PS. In the same post, I outlined the technical case for the GBPUSD. More specifically saying:
Can the price stay above 1.1991 and get back and stay above 1.2000? A move below would look toward 1.1962. On the topside, more short covering would look toward the near converged 100/200 hour MA at 1.2072 area.
Looking at the GBPUSD chart below, the corrective low stalled at 1.1991 and the price is now trading at 1.2035. The 38.2% at 1.20497 and the converged 100/200 hour MAs are now targets.
