The EURUSD has extended its corrective bounce, pushing to fresh session highs after yesterday’s failed attempt to hold below the 50% retracement level. That breakdown attempt fizzled late in the day, and buyers have since taken advantage, driving the pair higher.
The rally has now carried the pair right into a key upside target: the 200-bar moving average on the 4-hour chart at 1.17042. The market tested that level moments ago, with the high price touching 1.1704, before easing slightly back to around 1.1696.
This is an important decision point. If sellers can defend the 200-bar MA and keep the lid on price, it sets the stage for a retest of the 50% retracement at 1.16549. That would mark the second look at that support zone and could offer sellers another chance to re-establish control.
On the other hand, a firm break above the 200-bar MA would shift the tone back toward neutral. In that case, traders would eye additional upside targets: the broken 38.2% retracement at 1.1717, followed by the 100-bar MA on the 4-hour chart, both of which represent the next key battleground levels where buyers and sellers will fight for control.
For now, the EURUSD is testing a pivotal technical barrier — with the market waiting to see whether sellers can reassert themselves or whether buyers can keep the corrective momentum alive.
