Forex News: EURUSD has some drive, but can it continue?
Today we are looking at the EURUSD on the 8H as price has broken the fast trend and has started to form a new leg higher. The move has been accelerated by today’s reversal on the USD, which looks to be taking a break after three straight sessions of gains.
The EURUSD spent a fair period of time in its last trend lower after the last countertrend broke. Buyers tried a few times to regain control in the previous trend lower, but sellers had the answers until today. Today buyers look to have found plenty of drive as not only have we seen the range beaten, but we have also seen the fast trend broken.
With the USD helping drive momentum, buyers look to be in control for the time being. There are a few things to keep an eye on. A fade of the current 8H bar cutting all of its gains is a warning, as is a new move back into the range which could also pressure to break the uptrend. We would like to see a positive close in today’s NY session showing buyers are in command.
If we do see the rally hold, we will be looking for the next pullback to hold the new trendline further confirming it. If that all stay’s the course, we would be looking to the supply/resistance pictured on the chart to possibly offer up a test for buyers.
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