EURUSD backs off from topside trend line after better data
Data helping to strengthen the USD.
The EURUSD has moved back lower helped by some better data. Retail Sales were a little better than expectations. The Philly Fed index had a solid beat after the decline last month and is near the highest level since the 3Q of 2018. The jobless claims remain solid (although it could be seasonals too) Overall, decent data and that has helped the USD.
Technically for the EURUSD, the pair did move higher today and moved above the swing high from January 8 at 1.11675, but stalled at a topside trend line on the hourly chart at 1.1170. The high price reached 1.1171.
The fall brings the pair back to the close from yesterday at 1.1149 (the low just reached 1.11496).
A move into negative on the day, could see more downside probing with the 38.2% and swing levels at 1.1144 area and the 200 and 100 hour MAs at 1.11373 and 1.11334 respectively as targets. Oh.... the 200 day MA is between those MAs at 1.1136. Yesterday, the pair based near the 100 hour MA, and after breaking above the 200 hour MA/200 day MA, the pair based and moved even higher.
As a result of that price action yesterday, it is logical to assume that if that area is tested (i.e., the MA cluster), traders (both buyers and sellers) would have a high degree of interest. Stay above will be more bullish. A move below will be more bearish.
For now, however, the price sits between the trend line above and that MA cluster below with the sellers taking more control after the data. There is still work to do.