Bulls showed their stuff on run higher
The EURUSD moved higher on the lower dollar bias after the US election split Congress. Some bullish levels showed the way.
1. The 100 hour MA held support on the volatile up and down as results started to come out2. The 1.14315 did a good job of holding the support on a corrective test
The run higher has moved above the 50% (with some hesitation) of the move down from the October 16 high at 1.14609. That will be eyed as a support area now. The high reached the 61.8% of the same move lower at 1.14986 (call it 1.1500). We trade at 1.1488 between the 50% and the 61.8%/1.1500 level.
Longs will want to see a run above the 1.1500 level to open the door for 1.1532 and then the Oct 22 high at 1.1550.
For sellers against the 1.15000 level get back below the 50% will be a goal. The 1.14315 level remains a level of importance to me on a break lower. I would expect buyers against the level.
Taking a broader look at the daily chart, the 1.15068 to 1.15296 was a swing area into September. Get above is a target on that chart. Above that at the 100 day MA – which stalled the rally in September – will be eyed. That comes in at 1.5823. Is that where this pair goes? Seems like a logical target if the bulls can keep the bias going forward. That would be down the road.