Automobile on the upward highway
EURUSD climbed higher and in doing so entered the open lane on the upward highway. Looking at the daily chart, the price rises from March onwards, which eventually brings the price to a high of 1.14918. What other levels are becoming targets?
After breaking above the 1.1238-48 area, the pair ran to another former swing area defined by swing ups and downs dating back to April 2019 (see the numbered circles in red). This area is between 1.1322 and 1.1347. The price has just gone up to test the upper end of this range while the market continues to contract.
A break above places the pair and the road more open with 1.14117 (swing hi from June 2019) as the next bullish target above the March peak at 1.14918 which will be seen on the bullish highway.
By taking a closer look at the weekly chart, the EURUSD rise has brought the price above its 200-week moving average. I have this moving average right now at 1.1330 (Bloomberg has it at 1.1334). It is important if the price can stay above this level. The 38.2% retracement of the drop from the 2018 peak is 1.13694. It is also an upward target for a new dynamic in today’s trading day.