The EURUSD raced higher today and in the process moved up to test the old low of a swing area going back to July/August. That area comes in at 1.00958 and 1.0121. Looking at the daily chart the high price today reached 1.01128 and backed off. Going forward if the buyers are to take more control getting back above 1.0121 would be needed.
Drilling down to the hourly chart, the price decline has stalled near a lower swing area. This swing area is between 1.0022 and 1.00328. Over the last 4 so hours, the price has been able to hold above the topside of that swing area. Continue to do that and we could see a another run to the upside. Get back above the 38.2% and stay above is the first key target at 1.0056.
At the very least, holding the 1.00226 to 1.00328 and the buyers are staying alive with a positive heartbeat – with more work to do. Conversely, a move below 1.0022, and it is likely to lead to disappointment as the breaks higher (above 38.2% and into the topside resistance target) start to weigh on the techical bias.