The EURUSD moved sharply higher last week helped by Fed Chair Powell’s comments after the FOMC rate decision. The FOMC dot plot was also a contributing factor to the lower dollar (higher EURUSD).
The upside momentum continued on Thursday with the price reaching up toward the high prices from the end of November between 1.1008 and 1.1016. The high price reached 1.10087.
On Friday, a sharp correction took the price down toward the 38.2% retracement and swing area between 1.0878 – 1.0894. The low price reached 1.0888 before calming down into the close for the week.
Yesterday, the price started its rotation back to the upside taking its clue from the break back above the 38.2% retracement of the move up from the December low at 1.0899 (call it 1.0900). In trading today, the momentum to the upside has been more pronounced. Technically, the price extended above the swing area between 1.0958 and 1.0964. That level is now close support. It would take a move below that area to give sellers some hope. Absent that, and the buyers are in firm control.
On the top side, the next target comes in at 1.0993. Above that, and the highs from the end of November and December between 1.1008 and 1.1016 would be targeted. Get above that area and the pair is trading at the highest level since mid-August. Looking at the daily chart, the August high reached 1.10648.
This article was written by Greg Michalowski at www.forexlive.com. Source