Broken trend line on the daily stalls the fall

The EURUSD ran up on the Draghi comments and in the process cracked above some technical levels.

Specifically, the price broken a trend line on the daily chart t 1.2463 (see daily chart above)

It also broke above a trend line on the hourly chart (see hourly chart below). That trend line cuts across at 1.2493 on the current bar.

The corrective move off the high, came down to the lower of the two broken levels. Looking at the 5 minute chart below, the price moved down to a low of 1.2461 - just below the 1.2463 level and just above the earlier day high (from the Asian session) at 1.2459.

The bounce back has the pair moving back toward the high for the day at 1.25369. Upside targets remain at:

  • 1.25688. This was the swing high going back to Dec 16, 2014
  • 1.2597 - This is the 61.8% of the move down from the May 2014 high

The volatility is over from the headlines. It is now in the hands of the technical levels (well at least until the next headline or other market development). The EURUSD bullish bias remains with the 1.2493 close risk and 1.2459-63, the next key risk level for the buyers.