Broke above key levels yesterday
The EURUSD has continued the run higher today after a up, down and up day yesterday through the FOMC decision (see the price action on the hourly chart below). At the end of the day, the pair had moved above some key resistance ceilings.
The first was the 1.21534 to 1.21641 area. That was swing levels going back to 2018 (see weekly green numbered circles in the chart below).
The second level was at 1.2174 which was a ceiling from December 3, December 4 and December 14 (see solid red line and green numbered circles in the hourly chart above).
The price action moved above and below those areas yesterday (through the FOMC) before settling higher. The new break out was on.
What next?
Looking at the hourly chart, today the pair moved to a new high at 1.22583, and in the process has taken the price above a topside trend line on the hourly chart. The underside of that trend line cuts across around 1.2229. That is a close risk level for traders today. Stay above definitely keeps the buyers in control. The high from yesterday at 1.22113 is another risk level for traders looking for more upside momentum.
What about the upside, taking a broader look at the daily chart below, a topside trend line cuts across at 1.2262 currently. The high price just reached 1.22583. That is a close target that needs to be broken to keep the run to the upside going. Above that, a higher trend line cuts across at 1.2364.
SUMMARY: There are 3 different views from 3 different time period charts. What we know is the EURUSD is breaking above resistance at 1.2177 (from December) and 1.21534 to 1.21641. That is bullish.
The pair is above the high from yesterday at 1.22113 and above a topside trend line on the hourly chart at 1.2229. Those levels are close risk levels for traders today.
On the topside, a trend line on the daily chart cuts across at 1.2262. The high today reached 1.22583 so far. That level is a topside resistance level that may attract profit-taking. Get above and the door opens up for moves toward 1.2360.
