Dollar selling as London/Europe work toward the close.
The EURUSD has raced to a new session high and in the process has tested the 38.2% retracement of the move down from the June 25th high. That level comes in at 1.18366. The high price just reached 1.18364. If the buyers are to continue to take back more control, getting and staying above the 30.2% retracement is still an important hurdle. Failure to do that and the correction is just a plain-vanilla variety.
Nevertheless, the move did take out the high price from last week’s trading at 1.1830, and also moved away from a broken trendline at 1.18174 currently. Traders will want to see that trendline remain broken.
Watch the 1.18019 to 1.18043 now as close support. Hold, and we could see more upside momentum with a break of the trend line and swing area between 1.18208 to 1.18243 as the next target area. The high from last week at 1.1830 would be the next target above that level.
The area did hold and the price has seen the break higher, not only reaching the 1.1830 target, but also the 38.2% retracement level.