EURUSD keeps a lid on the topside against the low of a swing area on the daily chart

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  • EURUSD bounced off the 100 day MA yesterday

The EURUSD has seen up and down price action today, which is what saw yesterday as well. The high-priced today has reached 1.07478. That was just short of the high price for yesterday at 1.07479 (call them the same).

EURUSD moves to the low of a swing area

Looking at the daily chart above, those high price stalled just ahead of the low of a swing area (see red numbered circles on the chart above) at 1.07509. So there is some resistance ahead.

Having said that, the swing area on the daily chart extends up to 1.0805. So there is further room to the upside to go before the door opens more for the buyers.

Looking back in time, on January 9, the price started to move back in that the swing area, and stayed above until February 6. From February 6 to February 14, the high prices stayed below the upper end of that swing area (below 1.0805). Since February 15 the price has been below the swing area.

So getting back into that swing area now, and above it (at 1.0805) would increase the bullish bias for the EURUSD.

Conversely, stay below the 1.07509, and the sellers remain in play (and arguably more in control at least in the short term).

Drilling to the 4 hour chart below, watch the 1.0690 up to the 1.0704 area as close support. That area is defined by recent swing highs over the last three trading weeks. The 200 bar moving average on the four hour chart is within that area at 1.07027 Admittedly, the price action this week has been above and below that swing area.

EURUSD on the 4-hour chart

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