The EURUSD moved toward the day’s highs at the 1.24399 level. There was a report that the German “wise men” saw growth of 1% in Germany in 2015. Soon after that report, the EURUSD moved to new highs for the day. However, on further inspection, the estimates for German growth are centered higher at around 1.2-2% (see Ryan’s post HERE).
The EURUSD tested the 100 hour MA (blue line at 1.2443 and the low from Nov 3rd at 1.24383 and held.
From a technical perspective, the price tested the 100 hour MA near the highs at 1.2444. The low from November 3rd also came near that level at the 1.24383 level.
The range today in the EURUSD is only 49 pips wide. The average over the last 22 trading days is 115 pips. So there is room to roam outside the narrow trading range. The question is will the the 100 hour MA be broken and lead to further buying momentum or will the market sellers enter and push for new lows.
Looking at the 5 minute chart, the first reaction was a quick move lower. However, watch the 1.24167 level. This is the 50% of the range today. The close from yesterday is not from that area too at the 1.24195. If the price is to go lower, getting below these levels should solicit more selling.
The 50% of the range today comes in at 1.24167. The close at 1.2419. A move below will not be welcomed. by the buyers.
