The EURUSD has extended to a new high and entered further into what was the trading range going back to April and early May (above 1.0900 area).
Yesterday, the pair moved sharply higher and away from the 50% midpoint of the move down from the April 26 high to the May 31 low. That level came in at 1.0865.
The surge to the upside took the price above a key swing level target area between 1.0933 and 1.0942, but momentum slowed into the close.
Today, the pair rotated lower in the early Asian session and in doing so, retested the low of the swing area at 1.0933. The price low today reached 1.09331 – precisely at the low of the swing area and bounced higher. In early US trading today, the price extended to a new high at 1.0970. However, more hawkish comments from Fed’s Waller has pushed the pair back lower. The price trades at 1.0948 currently as I type.
Technically, the buyers still remain in firm control. It would take a move below 1.09332 give the sellers some confidence/satisfaction. Absent that and they are not winning. More conservative risk might be at 1.09193 and down to 1.0900 area (see red numbered circles on the chart below).
On the topside, the next key target is around the natural resistance at 1.1000.
For the trading week, the price has been stepping/trending higher. The low was on Monday near the 100 bar MA on the 4-hour chart (at 1.0724). The high reached 1.0970 (246 pips). The gain of 1.90% is the largest week move since November 7, 2022 week.
This article was written by Greg Michalowski at www.forexlive.com. Source