The EURUSD has reached the next profit taking area at the 1.2300-1.2307 area (see prior post here). The range for the day is up to 91 pips, which is close to the 22 day average of 103 pips. Is that enough for the day? Risk is defined against the lows now.
The 1.2300-1.2307 area has found support buyers on a look with stops likely below.
The resistance now will be watched at the 1.2329 level. This is the low from 2008. Also the 100 bar MA on the 5 minute chart is moving it’s way toward this area (it is at 1.2333 currently). The price on the ADP spike stalled before this MA level. If the pair is going to go squeeze higher after bouncing off 1.2300, a move above and staying above this MA is needed.
Overall, the EURUSD remains more negative with the break outside of the month long range (low at 1.2357/60) but there may be some room for a little correction. Watch the 100 bar MA above.
EURUSD will be eyeing the 100 bar MA again on a correction.
