50% retracement at 1.1596 area. The high reached 1.1600
The EURUSD has extended up to the 50% target talk about in the post from yesterday (See post here). The high for the day reach 1.1600 and has backed off. Getting there required taking out the January 31, 2019 high of 1.15137, the January 10, 2019 high of 1.15696. Yesterday the price moved above the 2020 high price of 1.14918. Right
Drilling down to the hourly chart below, recall that yesterday the price held support against its 100 hour moving average (blue line in the chart below). As mentioned above the 2020 high price was at 1.14918. The price extended above that level and stayed above that level. By the end the day the price is also extended above the January 31, 2019 high of 1.15137.
In trading today the pair dipped to a low price of 1.1506 just below the Jan 31 swing level, but quickly rebounded back to the upside.
The next daily target was at 1.15697 and that price was broken in trading today (high from January 10, 2019). The last 6 or so hours has seen the price stay above that level as the pair extended to the 1.1600 level (and just above the 50% retracement target).
The question now for traders is "Is it time for some backtracking?"
The 50% retracement is a key borderline for me. I like to think of it as the middle of a seesaw. When you pass it, you are on another trajectory.
Getting above the 50% would be more bullish, but staying below keeps a lid on the pair. Risk can be defined and limited against the level.
Sellers leaned today and they are now hoping that the price starts to take back some of the breaks that we saw on the move to the upside with the January 10 high at 1.15696 as the first target to get to and through. If that can be done, a move back toward the 1.15326 and 1.1513 area would be downside targets.
