The low today (and into the close yesterday) was where basing was key for the bulls.
The EURUSD is working it’s way higher and looks toward the September highs.
What has helped the run higher today, was how the price reacted at the lows today (and into the close yesterday).
Looking at the hourly chart above, the pair yesterday broke above the 1.1100 level. That area was a ceiling defined by highs from last week and again from Monday. Breaking above was bullish. The price moved higher.
However, there was a corrective move in the NY session that took the price back to that 1.1000 break level. The pair found buyers and the price moved higher in the Asian session.
In the early European session today, the price moved lower again and once again found support at the 1.1000 level. That was the money bounce. Buyers leaned, Sellers turned buyers and the price has extended above the high from yesterday (at 1.1033).
The price is working toward the highs from September. They start to show up at 1.10678, 1.10749 and 1.10847-866. The September 13 high reached 1.1109. All those levels have the potential to stall the rally.
The price is currently correcting lower as I type. A close risk/border line level to eye is the 1.10334 high from yesterday. The price moved above that level and then corrected to it before moving higher. Stay above is important for the bulls to keep the bias intraday at least.
Looking at the daily chart, the 1.1100 to 1.1109 remains a key level. Recall that area was home to highs in April, May and July (before a period of ups and downs). As mentioned above, the high in September stalled at the level and moved to the lows.
Ahead of that is the 38.2% at 1.1082 That is near other swing levels from the hourly chart.