EURUSD extends above the 200 hour MA/trendline resistance

Technical Analysis

EURUSD runs above the 200 hour MA

The EURUSD has now moved above the 200 hour MA and a topside trend line after breaking above the 100 hour MA earlier and basing against that risk defining level over the last few hours of trading.

The price moved briefly above that 200 MA yesterday, only to fail and rotate lower. The low yesterday made a new cycle low and lowest level since October 2002. Today, the swing lows stalled near the low from Monday’s trading, before basing and running higher over the last 4-5 hours of trading.

The next target will be the parity level at 1.0000 followed by a swing area between 1.0022 and 1.00328 (see green numbered circles). Above that, and the 38.2% retracement of the move down from the August 10 high at 1.0056, would be the next key target to get to and through.

Buyers are making a play. Stay above the 200 hour moving average in the broken trend line keeps control in their favor at least in short-term.

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