Cracked and stayed above 200 hour MA and 50% retracement
The EURUSD yesterday (discounting the early election run higher) spent most of the day below the 50% retracement of the move down from the October 20 high at 1.17409 and later in the NY session, below its 200 hour moving average (green line).
In the Asian session today, the price extended above the 200 hour moving average but could not extend initially above the 50% retracement. Traders waffled back and forth above and below the 200 hour moving average. In the early European session however the price started to use the 200 hour moving averages support and was able to extend above the 50% retracement line. Bullish. Over the next 6 or 7 hours, the price has shot up around 132 pips.
Looking at the hourly chart, the pair is approaching a swing high area between 1.18615 and 1.1869 that is just ahead of the October 21 high of 1.18802 from October 21. That high was the highest level since September 16. Get above - and stay above - would be more bullish.
Drilling to the 5 minutes chart below, the run to the upside has been without any major corrective move.
A trendline is currently being tested with a move below, giving a little bearish tilt intraday (especially since the sellers leaned against the swing area on the hourly chart).
If the price does break below the trendline and stays below, a move toward the retracement of the move higher at 1.18087 would be the corrective target. Moving below the 50% and the rising 100 bar moving average (blue line in the chart below), would increase the bearish bias.
