China's devaluation/Greek deal catalysts
The EURUSD was back to the up and down ways on the back of the China surprise devaluation and the announcement that the Greek creditors reached a deal that would avoid any defaults (details and approvals to follow).
Technically, the pairs fall took the price to the midpoint of the move up from the March 2015 low to the May 2015 high. That level comes in at 1.09638. This range has defined the pairs trading since March, with all the activity above the 1.0807 level since April 27th. The last month has seen activity in a more narrow range from 1.0807 to 1.1127. The midpoint of that move comes in at 1.0967 - not that far from the larger midpoint point going back to March at 1.09638. The low for the day came in at 1.0960 - not too far from those two midpoint levels. This keeps the EURUSD better supported. Also benefiting the pair from the bullish side, is the move back above the 100 day MA at the 1.1032 level today. This is support for the pair now. The pair is moving toward a test of the topside trend line at 1.1063 currently.
Looking at the hourly chart, the push to new highs in the the last few minutes has taken the price above the topside trend line at the 1.1050 level. The next targets on the upside come in at 1.10838 and then 1.11129 which are recent highs for the pair.
The buyers remain in control. Staying above the 1.1050 level is close support/risk. The 100 day MA at 1.1032 is the next support level.
