Near highs from yesterday/earlier today.
The EURUSD extended to a new day high, taking out the high from earlier at 1.05717. Yesterday, the high came in at 1.05735. The high just ticked at 1.0576. Price should go higher right? Not so fast the 100 hour MA comes in at 1.0575 and sellers were waiting there on the first look.
We have some data coming out at 8:30 AM. We will see if that level is broken. The 50% retracement at 1.0586 and the 200 hour MA at 1.05938 are upside targets on a break.
Although we are higher on the day, the price action has been up and down with limited stick on the extremes. The 100 and 200 bar MA on the 5 minute are converged at 1.0556 now. That is a risk level. The close from yesterday was at 1.05569 yesterday. If we are going higher corrections need to find support ahead of that level. In favor of a break, is the range is only 40 pips for the pair today. That is simply too narrow. The 22 day average is 78 pips today. So there is room to roam on a break to the upside (or downside if the rally totally fails).
