EURUSD extends to new highs after support held. What next for the pair?

Earlier today, I posted and talked about the EURUSD technicals. I wrote:

• The EURUSD broke higher today with a move above a swing area between 1.0448 and 1.0461 and the 61.8% of the move down from the December high (at 1.0456). Going forward, staying above that area is more bullish. ON the topside, there is a swing area between 1.0532 to 1.0543.

The price in the US morning session corrected lower, BUT it did find support buyers near the high of the swing area at 1.0461. The low price fell to a low of 1.0466 and bounced. Bulls and buyers are in control. Dip buyers leaned against the break point.

What now? What next going into the close and into the new week?

On the downside, the story remains the same with the 1.0448 to 1.0461 is the key level. Move below, and I would expect buyers turn to sellers on the disappointment from the break.

Stay above the breakpoint at 1.0448 to 1.0461 and the topside can be further explored/probed.

The next target (as outlined in the earlier post) is at 1.05325 to 1.05433. Move above that, and 1.05926 to 1.0609 will be targeted followed by the December high at 1.06293. Get above that, and the 100 day MA is at 1.06952 as is the 50% midpoint of the move down from the EURUSD 2024 high to the low reached in January. Put a star on your chart at that area.

Next week, the ECB and the Fed both meet. The expectation is that the Fed remains unchanged and the ECB is expecte to cut. That should weaken the EURUSD. That should keep a lid on the pair. So sellers may look at 1.0532 to 1.0543 for a place to sell with stops above.

However, stories can change.

• Waller last week was more dovish.
• Trump has demanded lower rates.

Much is dependent on inflation and growth. Trump says he will bring it down. Will the promises lead to results, in which case the dollar may continue the move lower. The technicals help to provide the clues to the markets bias shifts.

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