The EURUSD is higher for the 3rd day but backs off from topside swing area

EURUSD backs off against topside resistance The EURUSD moved higher today helped by ECBs di Guindos comments that a July hike was on the table. That helped to push the price of the EURUSD higher, and through a swing area between 1.0863 and 1.08728. Yesterday the price highs stalled within that area. The run to the upside was able to reach – and extend above – the 38.2% retracement target at 1.0920. However, it ran into another swing area between 1.0938 and 1.0944 (see green numbered circles). That was the limit to the upside (the high price reached 1.09356 just ahead of that area). The move back to the downside over the last five or six hours, has now seen the price rotate back toward the aforementioned swing area between 1.0863 and 1.08728 (what was resistance is now support). The low price just reached 1.08738 just above the high of that swing area. Buyers have pushed price back up to 1.0890 as I type. Move below that level and there could be further rotation to the downside as traders are disappointed on the break higher. The pair is now up for the third consecutive day. Yesterday the EURUSD closed at 1.08541. Admittedly, the rise has seen some ups and downs, but yesterday, support held near the 1.08205. Today's low also held that support level before moving higher. That is good news for buyers. Now the swing area down to 1.08633 is trying to hold support as well. So there is some desire to push higher. It just isn't a free flow run to the upside. On the topside watch 1.09032 followed by the 38.2% retracement 1.0920. Ultimately getting back above the 38.2% retracement is required to give the buyers more confidence and increase the bullish bias. If the price can not get above that level going forward there would be added uncertainty as to the buyers ability to push higher.