Forex technical analysis: What next for the EURUSD?
OK so it was quick...
The EURUSD traded above the 1.11500 level for the first time since August 2015. Admittedly, the time above was brief - my high reached 1.15005, it is currently trading at 1.1477 - but it was pierced .
Technically, the pair today has pushed above an area that 4 separate swing highs in 2015 between 1.1435 and 1.1465. This is now key support for the pair. Stay above on a correction and the bulls will still remain in control.
Also broken on the move higher was the The October 2015 high at 1.1494 and a topside trend line at 1.1490.
Can the pair push higher? Traders turned from buyers above 1.1490/94 to leaners against 1.1500, after the 1.1500 break could not be maintained, but be careful for some short covering on a break above. But holding support will be needed and the pair is approaching that support as I type.
Where does that next step take the pair on the topside should there be a run back to the upside?
Well, there isn't much above to grasp onto off the daily chart.
- The Feb 3, 2016 high at 1.1533.
- The January 21 swing high at 1.1679
- The August 24 swing high at 1.1711.