EURUSD moves back above 1.0600 area after 10 year auction

Technical Analysis

Author: Greg Michalowski | eurusd

Selling the dollar...

The treasury auction had strong demand and that has helped to push the EURUSD even higher in volatile trading. The pair is back above the 1.0600 level as I type. The low extended to 1.04533.  The high just peaked at 1.0616.  Short are scrambling.

THe high from yesterday reached 1.0626. The high from December 30 spiked up to 1.0651. Those are the next targets.  

ON the downside, the 100 hour MA at 1.0562 is now support/risk.  

It seems like the market may be a bit surprised by the reaction, but the dips keep on getting bought.   

Below is the minute chart of the move higher. The dips of the legs higher have been above the 38.2-50% of the legs moves (yellow area)  That shows the buying interest. In the current move the 1.0586 is the 50% of the leg higher. If there is more sellers at this area, a move below that level would be the minimum target to get below now.  Failure to do so, does not show that the sellers are taking back control.