EURUSD moves to new highs after test of hourly MAs finds buyers

Technical Analysis

Author: Greg Michalowski | eurusd

200 hour MA stalls the fall today

The EURUSD is back up and trading to a new day high in early US trading. The move higher only came after an Asian session move to the downside bottomed against the 200 hour MA at 1.15692 level (green line in the chart below). Also near that level is the 200 week moving average which currently comes in at 1.15677  (for this week).  The low for the day the low reached 1.15711 just above those key support targets (see weekend post which outlined the support area by clicking HERE).

200 hour MA stalls the fall today
The run to the upside has seen the price move to a high of 1.1609 so far. The 100 week moving average currently comes in at 1.16142 (see weekly chart below). The price currently trading at 1.1602.

EURUSD on the weekly chart
Going back to September and November 2019 (not shown), the low prices came in at 1.1601 and 1.1611. Finally on the hourly chart there is also a swing area between 1.1607 and 1.16127. 

The current high just moved into that cluster of resistance between 1.1601 and 1.1614.  It will take a move above all those levels and stay above to give the buyers more confidence. The high from last week at 1.16238 and the high from October 4 at 1.1640 are the next upside target followed by the 38.2% retracement of the move down from the September 3 high comes in at 1.16705.

If resistance holds, moving back below the swing area on the hourly chart between 1.1583 and 1.1586, the 100 hour moving average at 1.15806 (a moving higher) and the 200 hour moving average at 1.1569 (along with the 200 week moving average at 1.15677) are the downside targets.

So far for Monday, the technical levels are doing their job both on the downside in the upside in holding support and holding resistance. Traders are waiting for the next major shove outside of those technical levels

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