Jan 2016 low at 1.07086
The EURUSD bottomed last week after trading below the April 2015 low at 1.0520 and the December 2015 low at 1.05187. The low on Wednesday reached 1.0517 - just a couple pips below those two swing lows. The pair has swung back higher and has extended higher in trading today. Let's call the low from last week a triple bottom. What next?
The price has ratcheted higher since then with the pair retracing losses and closing newar unchanged on Thursday, and on Friday moving up on the day.
Looking at the daily chart, the pair has reached a high today of 1.06847 (see chart above). The "old" low before the march lower this month, came in at 1.07086. The price action has slowed to the upside over the last hour, with the price trading near the 1.0659 level currently. However, keep that "old" low level in mind should the buying continue. It should attract sellers on the first look.
Looking at the hourly chart below, the price action on the move higher today, based near the 100 hour MA (blue line in the chart below). That was a bullish sign.
It then broke and found buyers against the 200 hour MA (green line) at 1.06226 level). Again, that is bullish. The high from last week 1.0657 was also broken on the way to the highs for the day near the 38.2% of the move down from the November 10th high at 1.06838 (day after the election results on November 9th).
The rally higher has stalled a bit with the price rotating back toward the high from last week at the 1.0657 area. A broken trend line at the 1.0648 is also in the area. That should provide support buyers against the line.
