EURUSD erases some of the declines from last week
The EURUSD rebounded modestly on Friday, but stay below its 100 hour moving average (blue line) and closed near midrange (around 1.1715 area).
Today, the price initially moved lower, but in the European/London session, the pair has raced higher. The last 5 hours has seen the price move up from around 1.1700 all the way up to 1.1788. In the process, the 100 hour moving average and 38.2% retracement were broken easily. The market waffled around the 50% retracement at 1.17592 and the 200 hour moving average near the same level for a little bit before pushing higher and extending above a topside trend line, swing area between 1.1766 and 1.1770, and more recently the 61.8% retracement 1.1776.
Close support for the day comes in at 1.1766 currently. The 200 hour moving average and 50% retracement 1.17592 will also be a key barometer for both buyers and sellers.
Should the pair continued to run to the upside there is some swing area resistance just below the 1.1800 level. Get above that level and traders will be targeting the highs from last week which extended up to 1.18304, with 1.18145 area and interim target. That certainly would be a "reach" for today.
Stocks may be an influence. The major indices are giving up some of their premarket gains moving into the opening. Nevertheless the major indices are still higher with the NASDAQ up 65 points. The S&P is up around 11.5 points. Higher stocks tend to weaken the dollar. The EUR may also be supported by Brexit deal hopes.
