Eyeing the correction
The EURUSD has kept the bull trend going and added another leg higher.
The price dipped to 1.15806 - just above the 50% of the 2nd leg at 1.1579 on the headlines - and then shot up to a new session high of 1.1639. The 38.2-50% of that last leg higher comes in at 1.1610-17. If the price stays above that area, I like to think the trend move higher is continuing. A dip below, will muddy the water a bit at least for the trend move today.
Each of the legs higher today have been able to hold support in the 38.2%-50% retracement. The 100 bar MA on the chart also held support on earlier tests. We are currently running away from the 100 bar MA on the sharp move higher.
The range is about 110 pips now. That is not huge but it is above the 22 day average (about a month of trading) of 77 pips.
One red flag, is that the high took the price above the 1.1619-31 area. That has been home to swing highs going back to August 7th. We are in that area now after the extension above stalled. That could balance the buyers and sellers for a pause. Be aware.
