Forex technical analysis: EURUSD makes new highs for week
Correction from yesterday is reversed.
The EURUSD is making new session and week highs at 1.1171 (and new highs going back to the US election day up and down reaction). The high has moved to 1.1185.
The rise has not only erased the declines from yesterday, but has been accelerating in the European morning session. There has been only small corrections on the march higher.
The range for the day is 90 pips, that is above the 81 pip average trading range over the last 22 trading days.
The next upside targets for the pair come in at the 1.11974 level and then 1.12187. The first target is a topside trend line connecting highs. The 2nd is the underside of a broken trend line (see hourly chart above).
Looking at the 5-minute chart below, the pair is handing above a trend line, and above the 1.1171 high from yesterday. If the trend line and the 1.1171 is broken, we could see a retracement back toward the 38.2-50% of the trend move higher at the 1.1146-56. If traders really love the EURUSD (and they are showing love this week), that area should hold support (the 100 bar MA on the 5 minute chart should also be eyed).
Buyers in control. Support on the 5-minute is being tested. The 1.1200 and 1.1218 are the next targets. If the 1.1171 is broken, there could be a bigger correction.