Technical Analysis

Tough ceiling in the EURUSD being tested

Big up day for the EURUSD

The EURUSD move higher has been relentless to the upside with the move gaining monentum over the last 3 hours after target levels were taken out one by one.

The latest move has taken the price to a pretty tough ceiling at the 1.12617-641 area. That was home to swing highs on April 22, May 1 and May 13th. We just reached 1.12614. I would expect some cause for pause against the area as profit takers can lean. However, if broken, the pair could see a quick run up to the 100 day MA at 1.1277.

Drilling to the 5 minute chart below, the EURUSD raced above a topside channel trend line, accelerating the run higher.  The last leg of the run higher has the 38.2%-50% at 1.1237-43. The topside trend line cuts across in that area. If the sellers stall at the ceiling on the hourly, getting below this area would be the minimum to tilt the bias a little more to the downside.   Failure to do that and, the buyers are still firmly in control.  

EURUSD races above topside trend line intraday

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