The EURUSD has extended to new highs for the day but just barely. The new high extended to 1.2274. The prior high was 1.22717.
Looking at the two legs higher in the NY session, the price took one step higher, corrected 50%, then surged higher . The second step higher has the 38.2% at 1.2250. The 50% comes in at 1.22425. This is the correction zone that if the price stays above, will be an indication, the longs are still in control.
Looking at the hourly chart, the price has been able to stay above the 38.2% of the move down from the July 6th high over the last few hours. That level comes in at 1.2253. The price is also still is above the 100 hour MA at the 1.22307. The price in NY moved above and below this moving average but since moving back above, the price has not been below.
So overall, the bias is positive for the pair until these support levels can be taken out. Those looking more aggressive for a downside move could use the 1.2253 as a trigger with targets at 1.2250 and 1.22425. On the topside, the targets are 1.2274, 1.22812 (50% of the move down from the July 6th high), and the 200 hour MA at 1.2306 (and moving lower) are the next targets for the pair.
