First breach since July 19
The EURUSD rocketed back into the trading range of the year that persisted until the break below the 1.1100-1.1109 swing lows last week. That area defined lows from April, May and July before the break last week (see red shaded area in the chart below).
Looking at the 4-hour chart below, the price has moved above the 100 bar MA on the 4-hour chart at 1.11736. The high traded to a high of 1.11838. That is also into an area defined by June 18 low and the July 25 high at the 1.11807-871 area. Above that is the topside trend line at 1.11937. A move above those levels, thrusts the pair into the narrow 100 pip range from 1.1187 to 1.1285 that confined the pair from July 4 to July 23 (nearly 3 weeks). Within that range included the 50% retracement at 1.1219. The 100 day MA at 1.1230 and the 200 bar MA on the 4-hour at 1.12368.
The sellers on the break, lost their momentum. The tariff news seems to be a benefit to the EU as China could look toward the EU instead of the US as a trading partner in retaliation for the tariffs. Of course the EU is not in the best of shape if the US should take a dive from the tariffs but the story has a long way to play out, with plenty of uncertainty.
For now, the price action with the move back above the 1.1100-09 area, is more bullish with the pair moving toward the next key targets. They may slow the rise as traders listen but are cautious for reversals near technical levels as well.
