100 and 200 hour MA respected on dip
The EURUSD extended to new day lows after the better than expected ADP headlines (prior month was revised lower though). The Personal income and spending data at 8:30 AM ET was a bit light though. The low after ADP did find early support buying near the 100 and 200 hour MAs which are both converged a the 1.0604 area. The low reached 1.0609.
On the topside today, the high in the London morning session found sellers in a resistance area (1.0657-658) where prior swing lows and highs stalled the pair. There were a couple of brief breaks above that ceiling on Monday, but they were quickly reversed.
So overall, the pair remains supported (the lows from yesterday and Monday showed buyers at the same 1.0563 area) against the aforementioned MA levels, but let's face it, the ceiling needs to be breached. The range is narrow so there is room to roam. If broken, the 38.2% of the move down from the post election (Nov 10) high comes in at 1.06835. Then the pair will push toward the 1.0719 4-hour MA level. I guess you can expect some pause at the 1.0700 level as well.
