The EURUSD moves up to swing area target in the early US session and finds willing sellers

In the text from the kickstart post released earlier today, I noted:

EUR/USD: The pair moved lower in the early Asian session but found support from buyers within a key swing area and the 61.8% retracement of the move down from the December high, between 1.0448 and 1.0461. Buyers regained control, pushing the price back to Friday’s high at 1.05207. A break above that level targeted the swing area between 1.0532 and 1.0543.

Subsequently, the EUR/USD did move higher, finding resistance at the outlined swing area. The high reached 1.05325, where sellers emerged, and the price has since retraced toward the 1.0500 level.

Key levels to watch:

• On the downside: A break below 1.0500 with momentum could see the price rotate back toward the key swing area at 1.0448–1.0461, as buyers and sellers continue to “ping-pong” between levels.
• On the upside: Holding above the natural support at 1.0500 could lead to a rotation back toward the higher targets, with resistance around 1.0532–1.0543.

Traders should watch for momentum at these critical levels to guide the next directional move.

This article was written by Greg Michalowski at www.forexlive.com.