The EURUSD pair is witnessing an expansion in its trading range today. Initially, the range was confined to about 40 pips at the start of the trading day. However, as the day progressed, the range widened, now reaching approximately 74 pips, aligning with the 22-day average. This expansion indicates there was ample opportunity for movement, and the buyers capitalized on this by driving the price higher.
A key technical moment occurred when the pair surpassed the 61.8% Fibonacci retracement level at 1.09589, which effectively signaled buyers to intensify their efforts. Following this, the price ascended towards 1.1010, meeting our projected target for the upside during the start of the U.S. trading session. If the momentum continues and the price moves above 1.1010, the focus shifts to the next resistance zone, which lies between 1.1041 and 1.1064, a critical area dating back to August.
Conversely, for the pair to maintain its bullish trajectory (indicating a weaker USD), it would require sustaining above the key 61.8% retracement level at 1.09589. Dropping below this level, particularly towards the swing area low around 1.0944, could diminish the current bullish sentiment in the EURUSD market. In the absence of such a retracement, the buyers remain predominantly in control. For short-term traders, a significant level to watch is the 1.1000 mark, as it represents a natural support level, and a move below this could signify increasing momentum for further upside.
This article was written by Greg Michalowski at www.forexlive.com. Source