The bullish run continues
As the global markets applaud the US/China news the dollar has sold off, and there has been flows into the EUR as well (a little bit of hope for the EU economies on the back of strength in the US).
Technically, the piar has been making upside headway over the last few days, getting above some levels of importance.
Yesterday, the 100 hour MA and the 1.1000 levels were broken (blue line in the chart above). The pair moved to a resistance area defined by a cluster of levels including the 200 hour MA (green line), the 50% retracement (at 1.10434) and swing levels gong back to August 23, 29 and 30. The yellow area in the 1.1037 to 1.1049 was home to those level.
After a dip to the broken 38.2% at 1.10152, the pair gathered upside momemtum and was able to crack above that cluster for resistance. The price has stayed above the level since despite the stronger US ADP data (that should be dollar supportive). Stay out of that yellow area, keeps the buyers in control.
On the topside on the hourly chart the 1.10717 is the next topside target to get above.
Taking a broader look at the daily chart below, the rebound this week was kick started after the fall below the lower trend line failed on Tuesday. Yesterday, the price was able to stay above that trend line and move sharply higher. Today, the price action is continuing the upside momentum and moving away from the August 1 low at 1.1026 9solid red line).
On the topside, the pair is in between that 1.1026 level and the old swing lows from April, May and again in July at 1.1100 to 1.1109 (remember that old level). Toward the end of August the price moved above and below that level before dipping below on August 27 and starting a run to the lows.
If the buyers keep the momentum going on the hourly, that area can be visited again. NOTE thatthe 38.2% of the move down from the June high comes in at 1.1110 right around that swing area.
