Today, earlier in the session, the EURUSD reached a new high, pushing into a topside swing area on the 4-hour chart above, ranging between 1.0926 and 1.0939. The peak price of 1.09292 attracted sellers looking to capitalize on profits in this risk-defining zone. Following this, the downward movement saw sellers driving the price into a lower swing area between 1.0866 and 1.08869, which has historical significance dating back to mid-January and early February (see red numbered circles in the chart above).
Although price action between the January ceiling (red numbered circles 1-5) and the early February floor (red numbered circles 6-9) was notably choppy, the support level was expected/hoped (?) to hold today (see earlier video HERE). Additionally, the 38.2% retracement of this week's upward trend is near this level (at 1.08629), reinforcing its importance moving forward. As long as the price remains above 1.08629, buyers maintain control.
The price move higher off that support, has now also surpassed the high of the swing area at 1.08869, indicating increased buying momentum. On the upside, the upper swing area between 1.0926 and 1.09391 remains a resistance target for further bullish momentum. A break above this level would push the price towards 2023's extremes; the high price reached 1.10323 on February 2. Surpassing 1.0939 would open the door for traders to contemplate returning to that peak level.
