The EURUSD moved to low of 1.03485 last week(see weekly chart above) him and. That low got within 9 or so pips vs the January 2017 low at 1.03395. Buyers stuck a toe in the water against the key low, and the EURUSD price started a move to the upside.
Staying on the weekly chart below, the EURUSD pair today has moved above a swing area going back to 2015 and 2017 between 1.04617 and 1.05187 (see red numbered circles on the weekly chart above) . That area was broken last week on it's way to the lows for the week and the test of the 2017 low. That is a key break. Watch for that area to now hold support on dips.
Drilling to the hourly chart below, recall last week, the EURUSD pair's price moved outside of the "red box" that had confined the pair between 1.04709 and 1.0641 from April 27 to May 12. On the break last week, more momentum was seen the to the downside with the pair ultimately moving down toward the January 2017 low at 1.03395 (with the low price reaching 1.03485).
Yesterday saw up and down price action with the 100 hour moving average starting to catch up to the price. In today's early Asian trading, the price traded above and below the 100 hour moving average (blue line), before pushing higher into the late Asian/early European session.
That shove higher took the price back in within the red box giving the buyers more confidence to push higher. The swing lows going back to April 28 between 1.04709 and 1.04904, along with the falling 200 hour moving average near the high of that area, were then broken. That has led to the run to the high at 1.05549.
What now?
Looking at the hourly chart below, close support can be found between 1.0505 and 1.0509 (call it 1.0500 level). The price should find support buyers against that area on a dip and it is a close risk now for longs in the EURUSD.
What longs /buyers do not want to see is a move below the 200 hour moving average currently at 1.0492. Failing on a break above that 200 hour moving average level would certainly not be a good thing for buyers that are looking for more upside momentum.
On the topside, the next target area comes between 1.0567 and 1.05767 (see green numbered circles on the hourly chart below). Above that and traders will look toward 1.0592 to 1.05966.
