Price breaks the trendline every hour but also faces upside resistance
EURUSD rose for the 4th day in a row yesterday with a price hitting 1.18802. It was just below the September 16 high of 1.18817. The sellers leaned against this high swing and sold in the fence.
Despite the sell off, the pair still closed higher in the day.
Looking at the hourly chart, the rising sloping trendline is cutting at 1.1849 (and higher). This line will be seen by traders as a barometer for buying and selling. If sellers against the 1.1881 area can push below the trendline this should give them more confidence for a further downside probe.
Stay above, however, and buyers remain firmly in control with a 1.1900 level as another key target (Sept. 15 high) on new bullish momentum.
EURUSD this week low on Monday around the 1.1703 level. On Monday, the price rose above the moving averages of 100 (blue line) and 200 (green line). On Wednesday, the lower price hit the lower right of its 200-hour moving average. It was a bullish game. The price has increased by this level.
Can the pair rally for the 5th consecutive day? Watch the trendline for early clues. Stay on top and things will continue to look good for the pair. On the downside, it would likely take a move below 1.1826-30 to deepen our technical view of the new trading day.