The price holds the 38.2% retracement on the correction today
The EURUSD gapped higher and is keeping most of the gains.
In the Asian session the price shot up to the 1.0903 area at the opening but has since consolidated/corrected lower (see earlier post from the opening). Looking at the daily chart, the correction lower moved below the 200 day MA and the 38.2% of the move down from the May high. That level comes in at 1.0827. The low reached 1.0820 before moving back higher (see chart above).
Drilling to the 5 minute chart, the correction also tested the 38.2% of the move up at the 1.08186 level (see chart below). Since that low we are seeing higher highs with 3 points on a lower trend line. The price last tested that trend line AND the 200 day MA at 1.0839. Support held (red circle 3).
On the topside, there is a ceiling at the 1.08746-1.08768 area with 3 separate highs.
For me, stay above the 200 day MA, more bullish, but longs may trade against the 1.08768 level as well. Sellers do need to show they can take more control after the sharp gap move higher. They may have a lid in place, but they need to retake key MAs like the 200 day MA (and remain below) to prove they can take back more control.
