Slings higher...
The EURUSD is pressing to new highs. Trends are fast, directional and go further than traders expect. The move higher since the break above the 100 day MA yesterday has taken the price up 272 pips. The entire range from January was 274 pips. The range for February is 424 pips so far.
Looking at the daily chart, the next upside target comes in at 1.1256. This is the 61.8% of the move down from the August 2015 high.
The pair keeps on stepping higher. It is an obvious statement but as long as a buyers remain in control the sellers do not. I like to measure that by looking at the retracement of trend legs. The most recent leg takes the price from 1.1165 to 1.1238. The 38.2%-50% retracement of the leg comes in at 1.1218 to 1.1210. That is a proxy for control. If the price stays above, the sellers are not taking back the smallest of control. The buyers remain in control. If the price dips below, the waters get a little muddy. I go to plan B. The goal is lean against support. We are currently trading in that area as I type.
