January 27, 2023

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EURUSD reversing yesterday’s decline.

2 min read

Looks to retest the double top near 1.21777 area

The EURUSD moved to new highs going back to Feb 25 yesterday with two separate highs a pip or so apart. The first high reached 1.21762. The second took out that high but only by 1.5 pips to 1.21777. Call it a double top.  The price sold off into the close and closed near the lows for the day.

Looks to retest the double top near 1.21777 area

Today, after up and down trading in the Asian session, and a failed run to new lows on the day in the early European session, the price has seen a rebound higher as dollar selling intensified. The price has now moved back to a high of 1.21699 and is getting closer to the double top from yesterday near 1.2177.  A move above should open the door for further price gains with 1.2189 as the next target, followed by the natural resistance at 1.2200. The February swing high comes in at 1.22424. The high for the year is up at 1.23488 (see daily chart below).

EURUSD on the daily chart 

Close risk today is the same as yesterday’s close risk level at the time. That level comes in at the April 29th high of 1.21494. 

Recall from yesterday, the price in the NY session moved down and tested that level, before falling below and selling off into the close. 

Today, the price initially moved up to test that level in the Asian session, and backed off to the day’s low. The next up move to the level, broke above and has not returned.  It will take another move below that level to hurt the intraday bullish bias. IF not, the buyers remain in control. 

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