The EURUSD consolidates around a recent swing area/61.8% retracement
Price breaks above the 1.1000 level today
The EURUSD has raced above the 1.1000 in the London/European session. That level stalled the rise on October 3 and again on October 7. The price also moved above the 50% retracement of the move down from the September 13 high.
The run higher has taken the price to a high of 1.1033. That took the price above the 61.8% at 1.1021 and recent swing levels from 1.1020 to 1.10249. If the consolidation area can hold, the buyers remain in firm control, and we can see a move higher (toward 1.10678-749 area over time).
If sellers start, to give up on the topside here, the 1.1000 level remains a key support area. The pair created a ceiling last week at the level and again this week. The break todsy was key break that attracted momentum buying. So buyers should support the pair there IF the price is going higher.
If it is not. If this is just a run higher with no conviction, the price will crack back below.
Taking a broader look at the daily chart below is showing some "bullish" tilts.
- At the low at the beginning of the month, the lower trend line was broken but stalled and moved higher.
- The price today moved above a trend line at 1.10084
The price also did move above the swing low from August 1 at 1.10263, but is now below that level.
A move above and staying above would be more bullish with the 38.2% at 1.1082 a target, followed by the 1.1100 to 1.1110 as the next key area. Recalll that the high from September stalled at that level (was the low from April and May and July before breaking).
So buyers are in control and trying to consolidate around a resistance area. If it holds, more upside can be expected. If it does not base, the 1.1000 level remains a key barometer for traders and the bias now.