As European traders exit for the day, the EURUSD has pushed above a swing area on the 4-hour chart between 1.0674 and 1.0694 and extended up to a new high of 1.07155 (see red numbered circles on the chart above).
Drilling to the hourly chart below, the price dipped below the 38.2% retracement of the November trading range at 1.0664 on 3 separate hourly bars, but each break could not sustain downside momentum. The price climbed back above its rising 100 hour moving average 1.0690 (blue line in the chart below), and the high of that swing area at 1.0694. That seemed to ignite more buying and the run to 1.07155.
The 100-hour moving average now becomes a risk-defining level for buyers. Staying above is more bullish.
This article was written by Greg Michalowski at www.forexlive.com. Source