EURUSD breaks above a topside trend line
The EURUSD is extending to a new session high. In the process the pair was able to break the topside trend line on the hourly chart. The pair did extend above that trend line after the employment report, but the price quickly move back lower. When the price could not get below the earlier session low at 1.10843, sellers got tired and have been able to push the price back higher.
What next?
Stay above the broken trend line now at 1.1106 and the market will target:
- The 1.11200 high from yesterday
- The 1.1243 low from January
- The 38% retracement at 1.11304, and
- The falling 100 hour moving average at 1.1136 and 200 day moving average at 1.11379
The buyers have done the minimum getting above the topside trend line (and potentially staying above). The focus now turns to whether the momentum can continue to the next targets with probably the 100 hour moving average and 200 day moving average as the most important hurdles to the upside currently.
If the price were to move back below the broken trend line at 1.1106, look for the sellers to reestablish themselves on the failed break once again.
