Price hangs above trend line on the hourly but runs into topside resistance too
The EURUSD rose for the 4th consecutive day yesterday with the price reaching 1.18802. That was just short of the September 16 high of 1.18817. Sellers leaned against that swing high and sold into the close.
Despite the selling, the pair did still close higher on the day.
Looking at the hourly chart, the upward sloping trendline cuts across at 1.1849 (and rising). That line will be eyed by traders as a barometer for buying and selling. If the sellers against the 1.1881 area can push below the trendline, that should give them more confidence for a further probe to the downside.
Stay above, however, and the buyers remain in firm control with 1.1900 level as another key target (high from September 15) on further upside momentum.
The EURUSD this week bottom on Monday at around the 1.1703 level. On Monday, the price extended back above the 100 (blue line) and 200 (green line) moving averages. On Wednesday, the price low bottomed right against its 200 hour moving average. That was a bullish play. The price moved higher off of that level.
Can the pair rally for the 5th consecutive day? Watch the trendline for early clues. Stay above and things will continue to look good for the pair. On the downside it would probably take a move below the 1.1826-30 to further we can the technical picture in the new trading day.
