Stepping higher over the last few hours....
The EURUSD is making new session highs as North American traders enter for the new trading day. The pair is also taking out the Friday high at the 1.1242 level. The high has extended to 1.12495 so far.
Looking at the daily chart, of course the break came last week. The price extended above the 100 day MA the 200 day MA, topside trend line, 50% of the move down from the August high at the 1.1115 level. The 61.8% of the move down is the next target. A move above that level and traders will be looking towards the 1.1300 area (although there is not a lot of resistance until we get up to the 1.1435-65 area where there has been a number of swing highs going back to Feb 2015 (see top yellow area in the chart above).
Looking at the hourly chart, the thing that sticks out was how the low from yesterday bounced off the 100 hour MA area. That was a key technical clue for the buyers (see blue line in the chart below). Going forward that MA line will be instrumental in the bulls run (and for sellers if they can grab back control.). Today, the correction off the Asia-Pacific high and bounced (at 1.11605). This is another bullish signal.
The buyers remain in control.
