EUR/USD Breaks To New Highs In Early NY Trade

The EURUSD just made new day highs at the 1.4528 level.  The high from yesterday came in a 1.4530.  The close from yesterday was down at 1.4478.  The low today was 1.4466.

From a technical perspective, the 1.4447 level remains a key level on the downside.  This corresponds with the 2009 high price prior to yesterdays break higher.  Below that level 1.4411 is another key level.  This was the highest closing level for the EURUSD before yesterday’s higher close.

The pair is also back above the trendline that connects tops from the June 3rd high and the August 3rd high (1 in the chart above) . This level comes in at the 1.4510 level today.  This level will be watched in early trade this morning.  Buyers may look to buy against the level with the hopes that a move above the highs from yesterday, lead to another move to the upside for the pair.

Where can the market go?  On the upside the target remains the 1.4621 level. This level corresponds with the 61.8% retracement of the move down from the July 2008 high to the October 2008 low.  Above that level is the December 2008 spike high at the 1.4719 level.

The market should move toward this level as long as the shorter term bias remains positive.  In order to do that key support levels on shorter term charts should hold.  This may include the 100 and 200 bar moving average on the shorter term 5 minute chart (green and blue line at 1.4495 in the chart below).  This morning the price has started to move away from those shorter term moving averages after waffling above and below the levels during most of the London morning session in a consolidating, no trending trade.   Other support levels include the 1.4447 level (old high price).

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