EURUSD trades to a new high and tests the next target after breaking higher today

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Break outside consolidation area, has led to a run higher in the EURUSD

The EURUSD was mired in a non-trending range and between trend lines early in the NY session. The CPI data sent the pair down to test a lower trend line but the price quickly moved higher. The buyers and sellers were battling it out but the price had moved back above the 100 hour MA and the 200 day MA which was at the same level. A topside trend line loomed above. See post from earlier today outlining the technical story, and what needed to happen to escape the non trend market (CLICK HERE).

What happened?

The topside trend line was broken. Traders then targeted the high from last week at 1.19268. The price has moved to a high now of 1.19444.

Most importantly from a technical perspective is the buyers have made their play. Getting outside the range and running higher is bullish. The high has stalled near a swing high going back to March 22 at 1.1946.

Traders will now want to see follow through buying.

Getting above the 1.1946 level is step one. After that, traders will look toward 1.19667 followed by the 50% of the move down from the Feb 25 high at 1.19729. Above that and a key swing area between 1.1987 to 1.19912. That is just short of the key 1.2000 level. The price last traded above 1.2000 back on March 4. The high for the year reached up to 1.23488 back in early January (not shown) .

What does traders long, not want to see?

I would say that that buyers would not want to see the price now move back below the broken topside trend line at 1.1915 currently. Closer risk (and the best case scenario for buyers) is if the price stays above the high from last week at 1.19268. Both those instances, would keep the break higher play in tact and tilt the bias in the favor of the buyers.

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This article was originally published by Forexlive.com. Read the original article here.