EURUSD extends higher and now looks to the 100 day MA target at 1.0046 | Forexlive

The EURUSD is taking a step to the upside after breaking above the swing area between 0.99936 and 1.00005. The London morning session high reached 1.0006. The New York morning high reached 1.0054.

After a modest decline off of the New York morning high, the price has come back in traded to a new session high reaching 1.00201 so far. The current prices trading at 1.0018.

Close risk now comes in at the 0.99936 level. Stay above keeps the buyers in firm control (although the parity level may really be the close risk defining level).

On the topside, the next target comes against the falling 100 day moving average currently at 1.0046. On October 26 and October 27, the price tested the 100 day moving average only to find willing sellers. The price has not closed above the 100 day moving average since February 2022 when the moving average was way up at 1.1420. That makes the moving average at 1.0046 an easier hurdle, but still a level that could attract risk focused sellers like in October (with stops on a break above).

Meanwhile, in the US stock market, the Dow is doing well with a 250 point rise. Lower dollar helps that story line. The S&P is up 9 points now, but the Nasdaq is still modestly lower (-6 points) but off the lows too. Friday, the stocks moved higher while the USD moved lower. The strong dollar is another headwind for earnings. If the dollar can reverse, that would be a good for stocks in the short term.