Pair cracking above resistance targets
The dollar has taken a run to the downside (with the exception of the USDJPY). The run higher seemed to start with the GBPUSD breaking above resistance at 1.2522 (it is now above 1.2600 as I type). The EURUSD has joined the party with it's own technical breaks (see earlier posts on the swings in the EURUSD so far HERE and HERE).
Looking at the hourly chart. the EURUSD moved above its 200 bar MA on the 4-hour chart at 1.0884. That MA stalled the rally earlier today. The break was also able to extend above the next targets at 1.0896 to 1.0904. Sellers turned to buyers. The price has skyrocketed.
The next targets come in at 1.09672 and then 1.09887 swing highs for the month.
The month end London fixing may have a play from a non-technical perspective.
On the day, the 100 and 200 hour moving averages held support in the 1.0835-44 area. Holding that area kept the buyers in play, but it was hard to see over 100 pip run higher from that support level.
PS. IF the the upside momentum continues, the 100 day moving average is up near 1.1000 (at 1.1004 currently). Is that an end game target now? It certainly is in play. The price has not traded above its 100 day moving average since March 31.
PSS Watch the 1.09365 level. It is the 50% retracement of the move down from the March 27 high to the April low. Stay above/find buyers near that area and the bulls remain firmly in control.
