EURUSD trades in a channel/near highs for the day

Technical Analysis

Author: Greg Michalowski | eurusd

Sluggish CPI data send the pair's price back higher

Looking at the EURUSD, the pair has moved higher after the CPI data. The YoY data was a bit weaker than expected. 

Sluggish CPI data send the EURUSD's price back higher
Technically, the price of the pair has moved toward the high for the day at 1.13428. The high just reached 1.14340. The pair moved from being down to being up on the day now (closed at 1.1325 yesterday).   

The pair remains in a channel defined by a topside trend line at 1.1347 (that is the high from last week too).  Move above is increases the pairs bullish bias. Above, the key 200 day MA looms at 1.13633 currently. The last time the price of the EURUSD traded above its 200 day MA?  You have to go back to May 2, 2018. That is a long time ago.  KEY LEVEL folks. 

The lower trend line comes in at 1.1312 (and moving higher).The lagging 100 hour MA is not far away from that lower trend line at the 1.13058. Apart from a quick dip below on the ECB day last week, the price has not been below the 100 hour MA since May 31.  That remains a key barometer on the downside. 

Also of note today, is a large expire of options in the 1.1300 to 1.1350 area (been trading between those extremes today.  The estimates are: 
  • 1.1300 - 800M
  • 1.1325 - 750M
  • 1.1350 - 1.2B
That may help to keep the pair contained in the range (between the trend lines) at least until 10 AM ET.

The EURUSD 200 day MA has not been broken since May 2018
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