The EURUSD is trying to build another upside move today. The price action in the Asian session moved back above its 200 hour moving average (green line).
That is nothing new over the last few days as the price traded above that moving average on Thursday last week, and then on a number of occasions yesterday only to fall back down.
However today’s break to the upside initially stalled near highs from yesterday near 1.0543. The rotation to the downside, however, did find support right near the 200 hour moving average, and the price has pushed up from there.
So, buyers entered against moving average support, and buyers took the price higher with momentum.
Also of note from a technical perspective is that the swing low off of the high stalled near the swing highs from yesterday and earlier today. As a result, there is a floor being developed near the 1.0543 level.
In the short-term, stay above that level at 1.0543 and the buyers are in control. Move below and we could see some rotation further to the downside with the 38.2% retracement 1.05215 as the next downside target, followed by the converging 200 and 100 hour moving averages (blue and green lines in the chart above).
On the topside, getting back above the 50% at 1.0572 – and staying above that level – is the next important hurdle. Like the 200 hour moving average, there have been moves above that level over the last 4 trading days, but momentum has not been able to be sustained. As a result getting and staying above that level is important for the bullish storyline to unfold.