Overhead resistance looms.
The EURUSD surged above the 100 hour MA early in the London session (blue line in the hourly chart below currently at 1.0893). That break back above that line (yesterday the MA was approached and found sellers) sent the pair surging higher, and tested overhead trend lines at 1.0928 and above that at 1.0938. The high price has come in at 1.09325 so far today. The pair also moved above the 1.0911-15 area. This area is where a swing low and high came in on October 20th and 21st.
That area (around 1.0911) is key as it also corresponds with the low from June 24 (the low was 1.0910 on that bottom - see daily chart below).
Looking back at the hourly chart, the corrective low after peaking today has bottomed at 1.09106. So buyers seem to be leaning against that level. Are the buyers making a play for further upside momentum? They are leaning on support as a base.
Now there is additional upside work to be done if the buyers are to remain in control (i.e. stay above the 1.0910 level).
Specifically, the price needs to get above the 50% retracement at 1.0944 and the 200 hour MA at 1.09404 currently. There is also that old broken trend line at the 1.0938 to contend with at that area (follow red circles on the hourly chart).
So I like the support holding but there is more work to do. That ceiling area should be a tough nut to crack but if broken, it should solicit more buying. PS the price has not traded above the 200 day MA since October 5th. That is quite a long time ago.
