New highs for the EURUSD in early New York trading

The EURUSD is trading to a new session high, new week high and a new high since September 21.

New highs for the EURUSD in early New York trading

Looking at the 4 hour chart, the price earlier today rose above its 200 bar moving average on the 4 hour chart at 1.1793. Also extended above a downward sloping trendline just above that level at 1.1795.

Currently, the price is also extended above the 50% retracement of the move down from the September high to the September low. That level comes in at 1.1811. the high prices reach 1.18174 so far.

Buyers are making a play as hopes for a deal helped to push stocks higher and risk on flows. The negative for the EUR comes from risks of growth shortfalls. The pandemic is resurfacing and leading to more restrictions. Growth should slow as result, and the ECB may be forced to act.

Nevertheless the technicals will help to tell the story, and currently the breaks above the 200 bar moving average, trend line, 50% retracement are all pointing to a more bullish picture from that perspective. However if the price should start to dip back below the aforementioned levels, buyers could turn to sellers and flip the sentiment.