Moves above the 38.2% retracement at 1.07742

The EURUSD has pushed higher in US trading and is just making a move above the 38.2% retracement of the move down from the FOMC spike to the low seen in yesterday's trading. That level comes in at the 1.07742.

Yesterday the price tumbled – giving up all the gains from the FOMC move. However, support buyers did show up against the 100 hour moving average(blue line in the chart below). It was also very close to the low price immediately after the FOMC decision. The ability to push back above the 1.0634 – 1.0650 area (lots of swing highs came in in this area), and then holding the level in the Asian and early London session, gave traders green light to push higher. As US traders enter, so did a new bid. The move above the 38.2% keeps the buyers in control. The 1.0794/1.0800 becomes the next target are for the pair. The 1.0794 was a corrective high on the way down yesterday. The 1.08000 is a natural resistance level. Staying above the 38.2% level at 1.07742 would be the best case scenario for the buyers. Stay above keeps the buyers firmly in control. A move below, softens the bullishness (it is Friday), but the move higher is more impressive. The pair has added about 100 or so pips since NY traders came in, with modest corrections.

Looking at the 5 minute chart , for longs who like the run up and expect further gains, the 38.2%-50% retracement of the move higher comes in at 1.0737 – 1.07503. This area should hold support on a correction if the buyers are to remain in control (despite a move below the 38.2% level at 1.07742 .

UPDATE: The buying continues in the EURUSD with the price now breaking above the 1.08000 level. The 1.07742 level now becomes risk for the longs.