Heads toward the 1.1711 August 2015 high.

The EURUSD is being pushed to new session highs in early NY trading. The move seems to be helped by a flow into the EURJPY. The JPY pairs have been moving higher in a flight out of the JPY as US earnings are particularly strong this morning - especially big multinationals. McDonalds, 3M, GM, Caterpillar all beat easily. Both European equities and US stock futures are showing early gains with the Dow up about 100 points and the S&P up 6.5 points.

On the other side is there is a healthcare vote today which progresses "repeal and replace agenda" (simply gets to a debate on the floor), and it may be pressuring the dollar (vs select pairs like the EURUSD). Assuming this vote passes, it starts a process of amending the House plan in the Senate. It is not a slam dunk.

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So there is some cross currents and that is having an impact on the values of currency pairs. It could be a volatile day with stocks, politics leading the flows. The US calendar has minor releases scheduled. Case Schiller/S&P housing data will be released at 9 AM ET/1300 GMT. At 10 AM ET/1400 GMT Consumer confidence and Richmond Fed Manufacturing index will be released.

Looking at the EURUSD, the pair raced to a new session high at 1.16987. That is getting closer to the 1.17118 August 2015 high (see chart above). A move above that high will have the EURUSD trading at the highest level since January 16, 2015.

The move today has taken out yesterday's high at 1.16838. We are back down toward that level (trading at 1.1687). The prior highs on the move higher 1.16765 and 1.16657 will also be eyed for support (see hourly chart below). I would think that with the race higher traders who bought would want to see 1.1676 to 1.16838 to hold support. A move below, will muddy the water.

As mentioned, the EURJPY is helping to push the EURUSD higher. Looking at the hourly chart below, the pair is looking toward a topside trend line and other swing levels at 130.37-50 area. A move above keeps the pair on target for a move toward the 2017 high at 130.76 (that is the highest level since Feb 2016. Today, the pair based near, and is moving away from the 200 and 100 hour MAs (blue and green lines in the chart below).

The pair today also moved back above the natural technical level at 130.00. I would expect that if there is a retracement, that buyers would use that area as a support level if the buying is to continue.