The EURUSD has made it to 199 pips for the day with the push higher in the NY session. In the process, the pair moved away from that ubiquitous trend line (see earlier post: Forex technical trading: There is something about that trend line on the EURUSD and also above the 100 hour MA (blue line in the chart below) at the 1.1356. We did 570 pips last week. Nearly 200 pips today. You gotta like it.
EURUSD is above the 100 hour MA and finding support buyers. Can the level hold and explore higher levels?
The high today extended all the way up to 1.14217 level. It might be too much to ask for an additional push toward the 1.1456 area today. This is where the low from January 16 the 61.8% retracement of the move down from last week’s high, and the 200 hour moving average is moving toward (green line in the chart above). However, if the pair can push off the 100 hour MA (blue line the chart above) there is hope that the pair might have a little more squeeze to the upside. This area should give a serious cause for pause at the least on the first test. It also would give traders who have gotten long, a nice juicy level to take some profits off the table before the FOMC>
In the meantime, let’s just say, the longs from below are experiencing some additional satisfaction as focus shifts from EU to the US instead. The technicals are helping and the fundamentals with Durable goods ugly today, US GDP strength may now have a little more downside risk on Friday, and of course the Fed tomorrow, there is potential for further dollar weakness – especially if the Fed tweaks its tone (see Adams preview: Fed preview: Time for the Fed to forget rate hike .
Watching the 100 hour MA for intraday clues as the NY afternoon begins.
