The EURUSD is extending gains, breaking above the 50% retracement of the drop from the July 1 high at 1.16098. The move has also cleared the top of a swing area up to 1.16309, with the session high reaching 1.1643. The next key target is the 61.8% retracement at 1.1661—a zone that also acted as resistance during the July 10–15 decline (see chart above).
For buyers, the 50% retracement at 1.16098 now serves as a key risk level to defend for further upside. For sellers, a move back below that mark would be needed to suggest the rally has failed. Until then, buyers remain in control.
The rally to the upside started just four days ago when the price bottomed near its 100-day moving average. The price moved above a swing area between 1.1518 and 1.15295. That area was tested yesterday at session lows before bouncing to the upside into the close. Buyers are stepping higher and using the technical levels to push the bias in the upper direction.
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