Steps higher to 2018 swing low area at 1.2153 to 1.2164
The EURUSD has been stepping (breaking) above levels this week.
On Monday, the pair bottomed and based near the November high at 1.19195. On Tuesday, the pair move above the September 1 high (and high for 2020) at 1.20105. Yesterday, the rally higher continued with breaks above 1.20884 (a swing high going back to January 2018).
Today, the run to the topside has pushed not above (yet at least), but to the swing lows going back to January, March and April 2018 (see red numbered circles in the chart above). Those lows came in at 1.2153 to 1.2164. The high price has reached 1.21607 so far today - between the level. A move above that area would keep the trend move running higher.
Drilling to the hourly chart, the pair is trading in a channel with the lower support line at 1.2115 (and moving higher). The upper trend line cuts across at the 1.2200 area (and moving higher currently). On a break higher, that area would be the next target for the bulls. A move below the lower trend line would be a bearish tilt for the pair him himnow.
Finally - and perhaps most important - drilling down to the 5 minute chart, the move higher over the last 3 trading days has seen the price take three trend runs higher (in the fourth now).
Each of the first three, stalled the correction near the 38.2% of the trend leg higher (see yellow areas). That is indicative of a buyers in control and of a trending market. It will eventually take a break of that cycle (I like to see corrections below the 38.2-50%) to give sellers some hope that a high may be in place. Think of it as the minimum that counter trend sellers need to do to break the trend cycle.
