50% and ceiling area finally cracked
The EURUSD finally cracked above the 50% retracement and the ceiling area defined by swing highs going back to February 20th (7 separate highs) at the 1.2352-62 area.
The break today sent the pair hurdling to the upside. The price did not stall until reaching 1.24136. That took the price above the 61.8% of the move down form the February 16th swing high at the 1.24016 level.
The current price has just corrected back below the 1.2400 level (the 61.8% level). Looking at the 5 minute chart below, I am looking for the 1.2393 level as a close support level. The price formed a floor around that level on the run higher.
On a larger correction below that level, the 1.23806 should be a support risk level for the buyers. That is the 38.2% of the move up today and also was another swing area on the run up today.
When a strong ceiling is formed and then broken with momentum, traders expect the break to have some follow through buying, and they expect dip buyers. They certainly are not looking for a move back below the ceiling.
On the topside, getting and staying above the 61.8% would then look toward the 1.24336 swing high from February 19th.
