Also tests underside of old floor (or gets close to it)
The EURUSD rallied on Thursday on the back of the Trump tariffs and expecations that the Fed might have to ease further.
Technically, on the hourly chart, the pair tested a lower trend line at the lows and could not break below. So there was a little buying from shorts before the shove from the Presidents tariff tweet.
Run higher reached 1.1095. That was just above the 50% midpoint of the move down for the week at 1.1094. It also was just short of the 1.1100-094 floor from the daily chart. That floor was defined by lows from April 26 at 1.11094, May 23 at 1.11064, and July 25 at 1.11007. There was also lows from 2017 in the area. A floor becomes a ceiling when broken. The rally stayed below the ceiling (see chart below).
It was a good test and hold at the technical levels and may give sellers some confidence to jump back in with close risk being a move back above the midpoint, but the bearish bias would be really hurt on a break above 1.11094.
