Forex technical analysis: EURUSD moves toward week highs after ECB

Technical Analysis

Author: Greg Michalowski | eurusd

Test highs from yesterday on pivot in ECB statement

The ECB dropped the pledge to increase bond buys if needed, and that was enough to push yields higher and the EURUSD also higher. 

The EURUSD traded up toward the swing highs from yesterday/the week at 1.24336 and 1.2443. The high reached 1.2431 so far. A move above those highs open the door for further gains.  The 1.2471 is the underside of the broken trend line (and moving higher).  A move above would be more bullish. 

Support comes in at 1.2384 (swing lows from Tuesday and Wednesday).  Below that the 100 hour MA at 1.23647 will be a key level through the Draghi testimony.

For now, the pair is between the ceiling area and the support levels below as the market sets up for Draghi's testimony.  We will see if he keeps the hawkish conversation alive, or if he tones it down a bit.