The EURUSD of higher after the weaker US data today and in the process tested the 30.2% retracement of the April trading range. That level comes in at 1.0709. The high price reached 1.07107 just above the retracement level before rotating modestly to the downside.
What next?
For buyers, the 38.2% retracement is a key level to get to and through. If it can, the 100 bar moving average on a four hour chart and a swing area up to 1.0722 to 1.0732 is the next target that it broke it would increase the bullish bias.
For sellers, the best case area would be to have the cap against the 38.2% retracement to continue to hold at 1.0709. If the price can then get and stay below 1.0694 (the February low) and then break below 1.0655 – 1.0675 swing area, the sellers would have successfully thwarted the buyers attempt to take back control.
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This article was written by Greg Michalowski at www.forexlive.com.
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