Eurusd broke above resistance at 1.33. Before that it looked like this pair failed to break above 38.2% Fibonacci retracement line, but as you can see bulls are in charge here.
You can look at situation in two ways. First, you can (and should) be aware of resistance lines from Fibonacci retracement. 38.2% is behind us, for now Eurusd is above 50% retracement but this is possible that there will be a correction from here. For me the most important resistance is 61.8% line and 200 simple moving average which are very near each other.
EurUsd daily chart and Fibonacci retracement line as a resistance
The second way you can look at Eurusd is from extension perspective. Right now price is at 118% extension line, but this is possible that it will move higher. 127% and 138.2% Fibonacci extension lines are not so far away.
Eurusd daily chart and Fibonacci extension lines as a possible target
Pay a close attention to 20 moving average (I marked it on first chart). It looks like price is accepting it as a support level. Right now price is far away from that MA, but when there will be a correction, it should be an important level of support. I said should, because it is only my observation.
There is also one more important line to watch. It is a 200 simple moving average. It is clear that price respects it as a support and resistance. Since August price is below that average and there was only one correction which ended at the 200 SMA (it was in October). Today price is very near to 200 SMA, so it is possible that it will reach 1.35-1.36 level.
Eurusd daily chart and 200 SMA as a resistance
But what will be next? We will see. As I said, I will look at 20 SMA as a possible support during a correction, and 200 SMA as a target/resistance line. The rest is about managing positions.
