Trades around the 2012 low
The EURUSD dug in against the high from the Asian session yesterday at 1.1958, at the lows in trading today. The low in the Asian session stalled at 1.1955. The price also held the 200 bar MA on the 5-minute chart (green line in the chart below). The price based and moved back above the 100 bar MA (blue line) and took off. The bullish price action basically waved as it raced through the natural resistance level at 1.2000, and even marched through the 1.2042 level without much of a fight - at least initially. That level was the swing low from July 2012 (see weekly chart below). The high extended to 1.2070.
Since the peak, the price has traded above and below the 1.2042 level, but has remained above the 38.2% of the day's trading range and the 100 bar MA on the 5-minute chart. Staying above those levels keeps the bulls/buyers in control. Move below those level and the 50% of the day's range at 1.2012 and the bullish waters become more muddy (yellow area on the 5-minute chart above).
On the topside, the 50% of the move down from the 2014 high comes in at 1.2166. That is the next major upside target for the EURUSD (see weekly chart below).
As I type the EURUSD has moved back below the 1.2042 level. The market seems to be consolidating above and below the levels.
