Dollar bulls back in charge
The US CPI has sent the EURUSD sharply lower. What are the technicals saying and where are the next targets.
Looking at the daily chart, the EURUSD has pushed back below the 100 day MA (blue line in the chart above) and also an area that has defined a bottom extreme. That area (yellow in the chart above), comes between 1.1052 and 1.1097. The 1.1052-61 level will now be close resistance for the pair in trading today (RISK). The 1.1052 was the high from March and the 1.1061 was the low we reached on the initial move lower on Wednesday.
A key target on the downside is being approached (markets are moving fast). That comes in at the 1.0993-97 area where the 200 bar MA on the 4-hour chart (at 1.0997) is found and the 50% retracement of the move up from the April 10 low. Look for the trend down to slow or at least pause at this area. But the corrections will likely be sold.
