EURUSD hovers near critical swing level dating back to 2023 | Forexlive

Last week, the USD faced selling pressure, which drove the EURUSD price higher as the Federal Reserve Chair hinted at the possibility of a rate cut at the upcoming September meeting. This momentum pushed the price briefly above the 1.1200 mark, reaching a peak of 1.12002—the highest level since July 2023. Notably, the price also surpassed – and closed above – key levels, including a swing low from November 2021 at 1.1185 and a swing high from April 2022 at 1.1184.

After reaching that April 2022 high, the price dropped significantly to a low of 0.95352, a level not seen since 2002. However, since that 2022 low, the price has been on an upward trajectory, eventually reaching a high of 1.1275 in July 2023. This level now serves as the next key target, with the current price trading near 1.1190.

Looking at the daily chart above, the price has shown volatility since bottoming out in October 2023. However, over the past week or so, it has made a decisive break higher. A critical swing area is visible on the daily chart, ranging between 1.1095 and 1.11346. This area will be closely watched as potential support in the coming week. Remaining above this range could keep buyers in control and have traders stretching higher.

On the upside, the 2023 high at 1.1275 is paired with the 61.8% retracement of the decline from the January 2021 high at 1.12709. With the two technical targets, this area might present resistance, offering buyers a moment of pause (look for sellers on a test). However, if the price breaks above this level, stops will likely be triggered, leading to further upward movement.

So buyers are in control with more momentum above 1.1200 having traders looking to key target at 1.1275 area.