Finding resistance against the high from yesterday
The EURUSD moved lower yesterday after the Fed cut rates by the expected 25 basis points, but did not indicate view the dot plot that future rate cuts were forthcoming (although Fed Chair Powell kept the door open).
Today, however, there has been a move back higher. The technical catalyst, was a break back above its 200 and 100 hour moving averages at 1.1042 and 1.10474 respectively. Stay above that area has swung back to the more bullish bias.
The continuation move higher has taken the price back up to the high price from yesterday a 1.10749. The high today reached 1.10729 so far. We currently trade at 1.10678. Should the bullish momentum continue, the 1.10847 to 1.10866 swing area will be the next target.
Above that and traders will be once again be honoring the 1.1100 - 1.1110 area. Recall that the swing lows from April, May, and July bottomed at 1.1100 to 1.1110. Last week's high stalled at 1.1109 That area remains a key, key barometer for bulls and bears.
The price action this week has been down, up, down, up. We are currently near the "up" area, and above the midrange 100 and 200 hour moving averages. However, if the ups and downs continue, traders are nearer the "up" levels. That may encourage some leaning against those higher levels from traders with stops/reversals on a break to the topside.
