Rally today gave buyers some control, but more to do
The EURUSD rally today, initially stalled near the 100 hour MA (blue line in the chart below). The corrective move stalled ahead of a lower broken trend line. When the news came out that Italian's Savona might step down as economic minister nominee, saving the 5-Star and League coalition, the price shot higher and through the 100 hour MA.
Since then the price has consolidated between 1.6775 and 1.1644. The 100 hour MA is down at 1.16371.
The 1.1675 is near the swing low from May 23rd and other swing levels from May 25 and May 28th (see red circled numbers). The 1.1644 happens to be near the lows from last Friday (and just above the 100 hour MA).
Needless to say, the next move will be influenced by breaking one of those two levels.
If the upside momentum continues and the price breaks 1.1675 area, the next key target is not far away at the 200 hour MA (green line) at 1.16949. Also at that level is the 50% of the move down from the May 14 high.
Conversely, if the 100 hour MA is broken below at 1.16377, look for selling momentum to intensify as the break of the key MA fails on the break.
