Trend move slows.
The EURUSD's trend move higher - started after the weaker US retail sales - has slowed a bit in the last few minutes of trading.
Looking at the hourly chart, the move extended above a parallel trend line (to a lower line) and the price has backed down to it. On the topside, there is not much in the form of resistance until the 1.1366-1.1369 area. As a result, support will play a better role in determining the bias.
Looking at the 5 minute chart, the post Retail Sales price action gave traders one opportunity to buy against the day high at the 1.1265 level, before continuing the surge higher. Traders looking for the range to extend with momentum, were ready at this level, and they ended up pushing the price sharply higher. A period of consolidation, followed by another smaller surge to the highs, took the price to the 1.13486 high.
NOW, with the price coming off the high, the market will test the buyers desire to extend higher. I like to watch the 38.2-50% of the last trend leg higher (from the 1.1301 to the 1.1349 high), to see if the buyers lean against it on dips. If the level can hold (yellow area in the chart below), it says to me, the buyers remain in control, and the seller cannot take back even the smallest of control. Since there is not much resistance above, this will act as a guide for bullish and bearish bias.
