The EURUSD extended the 28 pip trading range seen prior to the Powell testimony. The range is now up to 58 pips. That is still short of the 22 day average of about 69 pips (but it is better).
Looking at the 4-hour chart, the move extended the trading range for the week getting above the high from yesterday at 1.09455, and the swing area between 1.0933 and 1.0942. Buyers looking for more upside would want to see the 1.0933 level now holds support.
The run to the upside reached 1.0963. The high price from last week reached 1.09701. Getting above that level and the high of another swing area up to 1.09728 would open the door for a run toward the 1.1000 – 1.1006 area.
Conversely, a move back below 1.0933 would have traders looking back down toward the 61.8% retracement 1.0919 and the lower support area down to 1.08955.
Buyers have made the play. They broke above 1.0942. Can that momentum continue?
A look around the other markets as the testimony continues shows:
- Dow Industrial Average is trading near unchanged
- S&P is down -20.3 points at 4368.30
- NASDAQ index is down -171 points at 13496.40
in the US debt market:
- 2-year yield 4.740%
- 5-year yield 4.006%
- 10-year yield 3.780%
- 30-year yield 3.864%
This article was written by Greg Michalowski at www.forexlive.com. Source