Tests 38.2% retracement target
The weekly range at the end of Wednesday’s trading in the EURUSD was only 107 pips and trading in the middle of the range for the week. That would be the narrowest trading range for a week if the market continued its lackluster trading. That was not to be. The EURUSD has surged higher. The range today is 107 pips alone and the pair has extended higher for the week. The pair now has a 157 pip trading range for the week.
Traders who anticipated an extension could have used the 100 day MA and 100 hour MA as a barometer for the bulls. The price moved above and closed above the 100 day MA yesterday. In the early Asian session the price moved above the 100 hour MA and never went back below either of those levels (the 100 day MA is at 1.16626 and the 100 hour MA is at 1.1674 now).
Looking at the daily chart, the pair is up testing the 38.2% of the 2018 trading range at 1.17795 level The July high reached to 1.17903. Those are the next targets to get to and through.
Risk off the daily will be eyed at the 1.1733-495 area where swing highs from the end of July kept a ceiling on the pair back then. It is now a floor for the bulls.