Traders long, don't want to see a failure....
The EURUSD is trading at new session highs and in the process are breaking above the topside trend line connecting recent highs.
The pair has been consolidating in up and down trading over the last 9 trading days. Even today, the pair fell and moved below the lower trend line, but failed and recovered. That same trend line was broken yesterday, but the line was reestablished as support in the early Asian session today.
As a result, traders will be watching this break to see that it is just another failure.
The pair is moving toward a resistance area defined by swing highs from October 21, on Monday (October 28th) and again yesterday. That area is between 1.0657 and 1.0666 (yellow are in the chart above). A move above that level will target the 100 bar moving average of the 4 hour chart at the 1.06835 level. The EURUSD price is not traded above that moving average since November 9.
Looking at the daily chart, remember the price bottomed very near the swing lows from April 2015 and December 2015. That triple bottom - with a little hindsight - can set the floor for a further correction higher. However, it needs the buyers to push it through the resistance targets including that 100 bar MA on the 4 hour chart. ON the daily chart other targets include 1.0708 - the low from early January 2016. That is a key level. Above that the 1.0777 to 1.0821 is tough resistance. If you recall, that area was home to a number of swing lows going back to May 2015.
