Key level for the pair.
The EURUSD has pushed higher in sympathy with the GBPUSD's spike higher. The EURGBP is helping the upside. After that pair spiked lower on the on the news, it has raced back higher and that has helped the action int he EURUSD too.
The EURUSD has spent all but a few stray bars between 1.1159 on the topside and 1.1023 on the downside (13th day). Yesterday, the price pushed above a couple of 200 bar MAs (hour and daily -green bars in the chart above) after spending most of the prior 6 days below. those MA lines (more bearish). I like to think that the sellers had their chance during those 6 days to take the price lower. When they could not make any headway to the downside, the buyers took the bull by the horns (and bulled the market higher). We now hit and are testing the upside resistance.
The buyers now have their chance to kick the can outside the range - and stay above. The 1.11678 level is the 50% of the Brexit move lower and then the 1.1188 level is the 200 bar MA on the 4 hour chart. That becomes the next key target above for the longs on a continued run higher. Support will be eyed at 1.1130-38. That is the 38.2-50% of the move higher over the last hour. The low correction price since the spike higher since the BOE announcement is 1.1135. If the buyers want to continue to take the bulls by the horns, they should support that area.
Initial Claims and PPI up next.
