Test support at 100 hours MA and finds buyers on the look
The EURUSD is down testing the 100 hour moving average (at 1.0802) after the better-than-expected US trade data and weekly initial jobless claims.
The pair is nevertheless finding support buyers against the 100 hour moving average (blue line in the chart above at 1.0802).
In the earlier rally today, the pair held resistance against the 38.2% retracement of the move down from the January 25 high to the low reached on Tuesday. That level comes in at 1.0843 and that was the high price for trading today.
With the pair trading between support and resistance from a technical perspective, I would expect that the market will simply lean against the level with stops on breaks. On a move higher the next target will look toward the 200 hour MA ( green line in the chart above). That level comes in at 1.08654 currently.
On a move lower, the 1.0759 – 68 area will be eyed. The 1.0768 level was the spring low going back to March 23. The 1.0759 level was the low going way back to September 2003 (a blast from the past).
The trade data was good news for 1Q growth. The initial claims creates a bit of a quandary for traders as the ADP data contradicts what the initial claims are saying. Add to that, the Good Friday holiday in Europe tomorrow on the day of the US employment report, and you have a recipe for a choppy trading session once again. So be aware.
