The EURUSD moved above trend line resistance (from May 1st high on chart above) and the 200 hour MA at the 1.2466 area. The high for the day comes in at the 1.2526 level. The price has held upward sloping trend line support a number of times today and yesterday. The current trend line comes in at 1.2475. The current 200 hour MA come in at 1.2464. These levels are support for the pair today. Stay above and the bullish bias can continue in the pair; move below and the bullish bias switches the other way.
Looking at the daily chart the price move above the trend line from May 1 high gives a bullish bias. How high can a correction run in the pair? Two key targets – if the price is able to remain above the 200 hour MA – comes in at the 1.2623 and 1.26667. These levels represent the low from January 2012 (broken in May) and the 38.2% retracement of the move down from May 1 high).
