EURUSD moves back toward 50% midpoint. Bounces.
Yesterday the pair pushed outside the 3 month range
The EURUSD rallied yesterday on dollar selling (Fed speak and FOMC minutes pushed the dollar lower), and in the process, moved outside the "red box" that has defined the up and down trading range (mostly) since October 22 (nearly 3 months). The move above the swing highs at 1.1485-1.1500 was the technical catalyst for the run higher.
If a nearly 3 month range is broken, traders should now look for that "box" to hold support on the test. What was once resistance (ceiling), now becomes support.
Today, the price rotated lower and tested the 50% midpoint ahead of the "red box". That level comes in at 1.15145. The low reached 1.15173. Dip buyers seem to be leaning ahead of the key area. We currently trade up near 1.1540. Buyers are keeping control.
The 1.1550 is a topside target and above that, the 1.15854 and 1.1620 will be eyed. The 200 day MA is at 1.1635 and cannot be ruled out as a target over time.