Forex technical analysis: EURUSD tests trend line/1.1200 level

Technical Analysis

Author: Greg Michalowski | eurusd

London/European traders looking to exit.

The EURUSD has kept the bid in the NY session and as London/European traders look to exit for the day, the price is trading near high levels.   The pair is also testing the topside trend line AND the 1.1200 level.  The combination could attract some profit taking.

An interesting look into the pair, will occur when the CFTC commitment of traders report will be released at around 3:30 PM ET.  Last week, the data showed that speculative positions in the EUR turned to long from short. That was the first time since May 2014.  

The report is as of the close of business on Tuesday. Last week on Friday, the EURUSD closed at 1.0928.  The close on Tuesday was higher at 1.1081. The price is now testing 1.1200 after the correction move yesterday.  Are more speculative buyers entering the market? It sure seems that way. 

Looking at the daily chart, on a break above trend lines on the hourly chart will look toward the election day high near 1.1300 and then swing highs in the 1.1326-65. That is going forward.  

Close support for traders now come in at the highs from yesterday at 1.1171.