EURUSD stretches to a new high

<p>The EURUSD is stretching to a new high and in the process is approaching the 1.0600 natural resistance level. The high has reached 1.05943 so far. </p><p>In my previous video, a spoke to the extension back above the 100 and 200 hour moving averages and the broken 38.2% retracement at 1.05709 (of the move down for the September 12 high – see hourly chart above). </p><p>That retracement level ended up holding the support after breaking above, and that gave the buyers, the go-ahead to push higher. The 5 minute chart below shows that support at 1.05709 holding on the dip. </p><p>What next?</p><p>Getting above 1.0600, would have traders targeting the 50% midpoint of the move down from the September 12 hi at 1.06087. That is also part of a swing area up to 1.0616. On the downside, traders will now be watching 1.05614 close support. More conservative support would be that the broken 38.2% retracement at 1.05709.</p>

This article was written by Greg Michalowski at www.forexlive.com.