EURUSD reestablishes resistance at swing area – ForexLive

EURUSD find sellers against swing area

The EURUSD has seen up and down price action today. The price is modestly lower after closing at 1.05835 yesterday. The current price is trading at 1.0579 about 4 pips lower on the day.

Looking at the hourly chart, the price highs today reached up toward a swing area between 1.05922 and 1.05986 (see red numbered circles and yellow area). Yesterday, the price squeezed above that level on a few hourly bars, but could not sustain momentum toward the swing hi from May up near 1.0641. The high price could only reach 1.06065.

In trading today watch that swing area (between 1.0592 and 1.0598) as a topside barometer. If the price can extend above, there should be more upside momentum.

On the topside, the 1.0641 was the swing high from May 5. The 50% retracement of the move down from the April 21 high cuts across right near that level at 1.06421. Going forward that level at 1.0642 will be a key target and barometer for buyers and sellers should the price head in that direction.

On the downside today, the Asian session low came in at 1.05539. The London/European session low came in at 1.05538. Move below that double bottom and more downside probing will be eyed with the rising 100 hour moving average at 1.05117 as a key support level.

For the week the EURUSD is higher as there has been more of a shift toward an earlier tightening from the ECB. Today German CPI came in higher than expected at 2.8% (vs. 1.2% expected). Year on year CPI inflation is up +33%.

Last week the EURUSDs close was at 1.04055. The high price this week reached 1.06065. The low to high range was just over 200 pips.

Of significance from a technical perspective this week was that the low prices from the end of day Wednesday and the lows yesterday, stalled ahead of its 100 hour moving average (blue line in the chart above). Staying above was a bullish signal..

Also, although the price reentered into the Red Box area defined by the highs and lows from April 27 to May 12 on the dip on Wednesday and Thursday (below 1.04709), the price did rebound back into the area after bouncing off the 100 hour moving average.

Buyers survived the dip and the price moved sharply higher yesterday and is trying to keep the gains today.

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