In the last post on the EURUSD , the pair was testing the 50% and swing area between 0.9805 and 0.9816. The highs from last Thursday and Friday were between 0.9798 and 0.9807. Hold above those levels, and the buyers looking for a move to the other side of the 50% would remain in control.
That is what happened.
The price extended above the 0.9816 and has seen more buying up to 0.98515. The current price trades at 0.9845.
Since basing at the 100 hour MA (at 0.9729) and then breaking above the 200 hour MA early in the NY session (at 0.97625) , and getting above the the 38.2% of the October range at 0.9771, the price has moved a solid 120 pips (from the 100 hour MA). The range for the day is up to 135 pips (it was about 52 pips at the start of the NY session). The 22 average (around a month of trading) is 127 pips.
What now?
The pips will likely start to get harder to the upside - although the sellers have to prove they can take back more control and the price action is trendy in the short term.
On the topside there is the falling 200 bar MA on the 4 hour chart (green line on the 4-hour chart above) at 0.9865. That is near an old swing area on the 4-hour chart between 0.9864 to 0.9877 (see red numbered circles on the 4-hour chart above). Getting above that MA (and swing area), is the next upside hurdle for the buyers.
What might hurt the bullish run now?
Looking at the 5 minute chart, the pair has not had much in the way of corrections since basing near the 100 hour MA near the start of the NY trading session. The price is trending.
The last trend leg higher from 0.98039 to 0.98515 has the 38.2 to 50% correction zone at 0.98277 to 0.98333. Stay above that area and the trend like move we are currently in, can continue. Move below and a rotation back toward the 0.9800 area cannot be ruled out as some profit taking begins.
