EURUSD moves lower after mostly better US data

Technical Analysis

Author: Greg Michalowski | eurusd

Dollar moves higher

The EURUSD has moved modestly lower after mostly better than expected US data. Retail sales, Empire manufacturing, Philadelphia business outlook were all better than expected. The initial jobless claims were a bit weaker but in line with recent trends of strong employment trends. 

Dollar moves higher

The EURUSD moved down to a low of 1.11345 which was close to the low of the day (seen on the opening bar).  The price fell from 1.1147 so lets not get too excited about the price action. The EURUSD has a high of 1.1158 (making the range for the day a modest 24 pips). That is not a heck of a lot for the pair.  

What can be said above the pair technically, is the price remained below the 1.1162 to 1.1167 area (the yellow area and green numbered circles). That is home to swing levels, with the 38.2% retracement in between at 1.11639.  Stay below is more bearish.  A topside trend line from this week, was briefly breached but the price moved back lower (see red numbered circles).  

Disappointing for the sellers, is the price can not build on the breaks below the 50% midpoint of the move up from the August 1 low.  That comes in at 1.11377. A move lower will need to see sellers developing more price action below that level (and stay below).    

We are currently back up to 1.1144 as I speak as traders keep a bearish bias but not running.   
 
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