The EURUSD is moving to a new session high and in the process is extending toward its falling 100 hour moving average (SEE blue line on the chart below) at 1.05783. The 38.2% retracement is just above that level at 1.05823. If the buyers are to take more control getting above those levels would give them more comfort technically (and more control). The 50% and swing area between 1.06106 and 1.0616 would be the next key target.
Taking a broader look at the daily chart, the low price from yesterday and again today stalled just ahead of the low of the swing area targeted at 1.0484. The low price yesterday reached 1.04872 while the low price today reached 1.04904. Holding support at that swing area gave the buyers the go-ahead to push higher.
On the top side, the broken 38.2% retracement at 1.06106 dovetails with the 50% midpoint on the hourly chart of the move down from the September 20 high at 1.06117. That increases the importance of that area on the corrective move higher.
This article was written by Greg Michalowski at www.forexlive.com. Source