Bases against the 200 hour MA/1.1200 level
The EURUSD had trouble at the 1.1230 level (50% of the move down yesterday), but was able find support buyers against the 200 hour moving average (green line in the chart below) and the natural support at the 1.1200 level. The push higher off that level was able to extend above the 1.1230 level. That - and perhaps some London fixing flows - helped to push the pair to new highs.
What next?
The surge has extended the EURUSD to 102 pips vs 109 pip average over the last month of trading. We are seeing a little correction off that high now. If the buyers are to remain in control, look for buyers to show up at the 38.2% -50% of the last surge higher. That comes in at 1.12395-476.
The sellers have to take back control. Getting below this area would be the minimum they need to do to take back control.
