The EURUSD has moved lower after the stronger-than-expected ISM nonmanufacturing data. After holding support against its 100-hour moving average at 1.08627, sellers have now pushed the price below that moving average. The 200-hour moving average is now the next target at 1.08535. The 50% of the move-up from the end of May low is also in play at 1.08514. Break below each would tilt the bias more to the downside from a technical perspective.
On Monday and Tuesday, the price moved above the up-and-down range above 1.0887. The price extended up to 1.0915, but rotated back to the downside yesterday.
The ECB rate decision tomorrow may be helping to weigh on the pair to the downside. The ECB is expected to cut rates by 25 basis points.
This article was written by Greg Michalowski at www.forexlive.com.
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