Stalls ahead of a swing area.
The EURUSD has moved back above the 100 hour MA and 38.2% retracement at the 1.0900 level. That is the bullish news. The not so bullish news is that the price stalled against the 1.0920-22 area.
Looking at the hourly chart (the high just reached 1.0921. There have now been 4 swing levels in that area. Admittedly, there have been some breaks above, with the most time spent above on Tuesday and Wednesday of last week, but there is a limit to the rallies. The rallies reached 1.0950 and on Friday the high stalled just ahead of that level at 1.0946.
If we are to go higher from here:
- Stay above 1.0900
- Get and stay above 1.0920-22
- Get and stay above 1.0946-50
Looking at the daily chart, the pair moved above the 200 day MA (and closed above) on last weeks French election gap higher. That 200 day MA comes in at 1.0836 currently. The close above the 200 day MA was the first crack above since October 2016. Key support if the price does correct below the 1.0900. ON the topside, the 1.0951 level was a swing low from July 2016. That may have been the catalyst to stall the rally last week. Get above that level and the 50% of the move down from the May 2016 high comes in at 1.09775. Above that and a trend line cuts across at 1.1014 (and coming down).
For now intraday....buyers more in control above 1.0900.
