Richmond Fed and Consumer Confidence were both better and have put an end to the EURUSD buying (Event Risk puts the kibosh on the rally for now).
Rihmond Fed Manufacturing Index at highest level since Dec 2010
The Richmond Fed index was the highest since November 2010 (see chart above)
The Consumer Confidence was the highest since October 2007 (see chart below).
Consumer Confidence at the highest level since October 2007
The better data has sent the EURUSD back down and it has tested the 200 hour MA at 1.2721 – the lowest point for the “line in the sand” today at the 1.27708 level (see prior post HERE). The buyers are maintaining some control off the level. However, the data today is now ambiguous enough to likely slow the buying (the dollar selling) with the FOMC the next key event tomorrow at 2:00 PM ET.
The logical expectations now is for the market to consolidate with resistance against the 1.2746-57 now. A move below the 200 hour MA will discourage the intraday buyers and bring the lower trend line in play.
The wind is out of the trends sails now. Bullish positions are likely to be pared back now and a more “up and down market” is expected with risk levels defined by the technical levels.
Darn data took all the fun out of the trend move.
EURUSD holds 200 hour MA but the better data should make the 1.2746-57 a resistance area now.
