EURUSD breaks higher. Extends above the 100 hour MA and buyers propel price to next target

The EUR/USD tested its 100-hour moving average twice earlier today, with sellers defending the level and pushing the price lower each time. However, in the past few hours, the pair broke above the 100-hour moving average, signaling a shift as sellers turned into buyers. This momentum propelled the price higher to challenge its next key target: the 200-hour moving average at 1.0301.

The price briefly reached 1.0303 before retreating, showing initial hesitation. To sustain the upward move, buyers need to push and hold the price above the 200-hour moving average. If successful, the next target lies in a swing area between 1.0332 and 1.0343, which coincides with the 38.2% retracement level of the December high at 1.03494.

The ability to break and hold above these resistance levels will be critical for further bullish momentum.

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