Earlier decline in the day could not get to the 100 hour MA. Buyers reentered
The EURUSD has made another run to the upside today and in the process extended back above a swing area in the 1.1344-527 area (see yellow area). Traders will behind that level for support again today. Stay above keeps the buyers more control. The gains today were helped by rebounding US stocks (dollar lower).
The initial move for the pair was to the downside in the Asian session. However, the pair's decline at the session lows today, could not reach the rising 100 hour moving average (blue line). Recall from yesterday's trade, the pair based against that moving average level on 2 separate occasions before moving sharply higher to test the topside channel trendline at 1.1374. Staying above the 100 hour moving average helped to keep the buyers in play (and with control).
Like yesterday, the run to the upside has now taken out previous recent high, but only by a few pips (4 yesterday and 6 pips today). The high yesterday came in at 1.13744. The high today as only reached 1.13807.
The CPI data this morning has taken some of the upward momentum out to US stocks with the S&P and NASDAQ futures now implying a negative opening. That has helped to push the price back below the recent highs (last week at 1.1370 and yesterday's high at 1.13744). Traders will want to see the pair move back above those levels to keep the buyers in control.
Taking a broader look at the daily chart, the high from June reached 1.14211. The hi going back to June 2019 reached 1.14117. That area between 1.14117 and 1.14211 would be the next target for the pair on increased upside momentum. The high for 2020 reach 1.14918 back in March.
