The EURUSD moved sharply higher earlier in the day with ECB headlines and more positive technicals initially squeezing the price higher. The price was able to get above the 61.8% retracement and swing highs from last Friday and Tuesday around the 1.1320 to 1.1323 area.
The price further squeezed up to a high of 1.13592 much was near a swing high going back to December 1. The swing high from December 8 reached just below that level I.13543. Sellers lined up against that area, and pushed price back to the downside over the next few hours.
The low price on the subsequent fall, stalled near the midpoint of the range since the November 30 high at 1.13015 (call it 1.1300). The price since that bottom moved up to retest the 61.8% retracement and swing high levels at the 1.1320 to 1.1323 again. The high price just reached 1.13213.
What next?
Getting above 1.1323 would open the door for rotation further to the upside with 1.1333 and 1.13469 as the next targets ahead of the swing area at 1.1354 to 1.1359.
Conversely holding below 1.1323, and traders traders will look back down toward the 1.1300 level followed by the rising 200 and 100 hour moving averages. Of note is that earlier in the day, the price did bottom near those moving averages and helped to give a more positive/bullish bias to the day's trading. A move below the moving averages would be needed to tilt the bias back to the downside.
Since November 30, the EURUSD has been in a range between 1.12208 and 1.1359. In between sits the moving averages as a middle-of-the-road barometer for buyers and sellers.
