The EURUSD has pushed higher on the back of the weaker data and more favorable technicals from the charts.This has been able to keep the buyers in control (see VIDEO from last night at Keeping the EURUSD buyers in control (October 28th, 2014)
EURUSD surges higher.
The pair has moved above the low from 2013 at the 1.2746 and 1.2757 levels respectively. These levels were breached last week on the way to the high price at the 1.2839 but later gave way on the move back lower (see daily and hourly charts). The market is slowing against this area currently, but the level will remain important (I feel) going forward. Hang around without a meaningful correction and the buyers will gain more confidence for another push higher. The range is up to around 80 pips so far. The average over the last 22 trading days is 114 pips. So there remains room to roam.
The price is also moving away from the 200 hour MA (green line in the chart above at 1.2721) and 50 % of the move down from last weeks trading (at 1.27262). Bullish.
Going forward, this area is a key line in the sand for the bulls/buyers. The price should not go back below this level if the buyers are to remain in control.
The EURUSD is testing the lows from 2013 at 1.2746 and 1.2757.
Looking at the 5 minute chart below, the 38.2%-50% of the move higher today comes in at the 1.27237-331 area. If the buyers love the EURUSD, they should love it on a correction in this area. This yellow area is the dip area for buyers today and is supported by the 50% and the 200 hour MA as well.
The FOMC will make their interest rate decision tomorrow. With weaker data out of the US this week, the market will likely err on the side of a more dovish Fed bias in the statement. This should keep the pair supported for the time being. I am not so excited going through the FOMC decision with a position though. The 1.2780 area would be a nice topside target today, but we need the buying momentum to stay in tact.
The dips should find patient buyers in the 1.27237-1.27331 area.
