As NY enters the fray, the EURUSD is looking to make a move.
- The range is narrow at 53 pips. There is room to roam and extend the range for the day.
- The price is hovering around the 50% of the move down from July 6th at 1.22812 (see hourly chart above)
- The 200 hour MA (green line) is at the 1.2283 (see chart above)
- The 200 bar MA on the 5 minute chart is at 1.22845 (green line in the chart below)
- The trend line off the lows on the 5 minute chart comes in at 1.22818 (see 5 minute chart below)
With the price at 1.2283 currently, the price is right in this area. A move away is forthcoming.
The price today made new corrective highs. The last move higher took out the old high from earlier in the day at 1.22123 to 1.23159. The inability to extend higher with momentum on the break gave selllers a reason to sell. I would think that sellers are therefore slightly in control. I would expect, however, that a move below the close from yesterday will be eyed at the 1.2272 level. The price low in London only reached 1.22755 before rebounding. Stops on shorts will likely be in the 1.2293-1.22972 area now.
Should the price move lower, look for support at:
- 1.2262 (38.2% of the move up from the weeks low at 1.21746). The low for the narrow trading range today is at 1.2264
- 1.2253 (broken 38.2% of the move down from July 6th – see hourly chart)
- The 100 hour MA (blue line in the hourly chart at the 1.2236 level currently.
If the price is able to move back above the 1.2297-1.2300 area, look for the following targets:
- The high to be tested at the 1.23162,
- The high from last weeks narrow trading week at 1.23229.
- The low from July 5th at 1.23628 and
- The July 6th high at 1.2400
Although there is a number of US releases today, they will compare in comparison to Chairman Bernanke’s comments on Capitol Hill at 10 AM. The comments about additional stimulus will be the question or comment that the market will be awaiting.
