New YTD lows failed. PMI data, pressured the USD. Shorts covered
The EURUSD has clawed its way back to unchanged (now higher) on the day after being down up to 43 pips on the day just a hour or so ago.
The pair is looking to test the 100 hour MA at 1.11572. The high just reached 1.1155. Key test here. The underside of a broken trend line is also in the area. The 1.1141 will be eyed on a correction. That was the low from Tuesday's trading.
A move above the 100 hour MA could ignite more buying with the 1.11662 level as another target. The 200 hour MA is up at 1.1182 (near the 50% at 1.11847).
What helped the squeeze?
- Cheeky dip buyers near the lows for the year and above the 1.11000 level (see prior post here)
- Some poor PMI data out the US that lowered the USD.
The squeeze was on.
