EURUSD breaks above key resistance, signaling bullish momentum

The EURUSD is moving to a new session high (USD lower).

Yields in the US are moving lower helping to weaken the USD in the process. The 10-year yield is now down -14.1 basis points at 3,818% and trades at new lows for the new year. The Decemebr 29 low at 3.783% is the next target.

Looking at the EURUSD, the price has moved above a swing area above 1.08038 and 1.0824 Staying above that level is more bullish for traders in the short term. The price is also extending above its 200-day moving average at 1.08395. The high price just reached 1.0845.

On the topside, the broken 38.2% at 1.08752 is a target. Above that and the 100 bar MA on the 4-hour chart comes in at 1.08845 is also targeted. Yesterday, the price moved up to test that moving average but found early sellers against the level. Last week, the price briefly moved above that moving average only to run out of momentum, fail, and start the run back to the downside. The MA will be a key level going forward. Be aware.

For now, stay above the 200-day moving average at 4.08395 is the best case. It would take a move below 1.08243 (and staying below), to disappoint the buyers now.

This article was written by Greg Michalowski at Source