Forex technical analysis: EURUSD bases against MAs and rockets to new highs

Trades above swing area

In an earlier post, I spoke of the 50% midpoint at 1.2359 and the hourly MAs (blue and green lines in the chart below). 

That 50% retracement level was broken. The price moved to the 100 hour MA at 1.2341 area.  Buyers showed up and the price rocketed back higher. The price high just reached 1.2398.  

Sellers tried below the 50% retracement but could not get back below the key MAs on the hourly chart.

What now?

Traders need to give the buyers the benefit of the doubt above the 1.2379-836 area. The 1.2379 is the 61.8% retracement. The 1.23836 is a swing level (see red circles).  Stay above that area, and the buyers remain in control.  The swing highs from last week in the 1.23336-456 area (see blue circles) are the next major target area.  

Move below the 1.2379-83 area and the waters become more muddy on the failed break. 

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