EURUSD races higher after cracking above ceiling

Technical Analysis

Author: Greg Michalowski | eurusd

The 1.10894-924 broken

The EURUSD has taken a run higher after breaking above a ceiling area at the 1.10894-924 area. That area was home to a number of swing levels going back to November 6.  There was one extension above that level on November 21 which took the price up to 1.10965.

EURUSD on the hourly chart

Yesterday, the pair peeked just above the area  (high reached 1.1093) but quickly retreated. The corrective move lower today stalled near its 100 day moving average at 1.10683. The last few days has seen that 100 day moving average stall falls.  Holding that area gave the buyers the go ahead to continue the upside move.

What now?

The break has taken the price above the 1.1100 level which is home to the 61.8% retracement of the move down from the October 31 high. The high price has just reached 1.1109.  The best case scenario for the bulls is to stay above the 1.1100 level although I would also give the bulls/buyers the control if the pair can stay above the 1.10894-924 old ceiling area.  Stay above that area and that support and the break is for real with more upside potential (toward 1.11275-31)

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