Forex technical analysis: EURUSD extends above next hurdle. What's next?
The 1.1000 level is what's next
The EURUSD had a bit of up and down time of it as the NY session got underway, but the support level held (see earlier post) against the 1.0915-25 area.
The subsequent rally has seen the price extend above the 1.0971 level (highest close since March 5th). The next target is up at the 1.1000 level and there is some early profit taking against the level (or so it seems). The natural resistance level has been breached 6 separate times over the last month and a half - each failed. The high has extended to 1.09887 so far. Real close support comes in at 1.0971. If it stays above that level, we should see a serious test of the 1.1000 level.
The range for the day (was 91 pips earlier) is now at 130 pips. The average trading range over the last 22 days is 131 pips. So we have reached the average. That does not stop the market from going higher but it can make additional moves more difficult. Traders who are long, can take partial profit against the 1.1000 level. If we do get a break, however, there will likely be stops as the squeeze continues. The next target would be at 1.1025-35 area where highs from April 3 and April 9th stalled (and March 24th as well - see chart below). The high on March 25 peaked at 1.1051.