Better German retail sales and holding 100 hour MA help the pair
The EURUSD is higher (1.0946 was the closing level yesterday) in trading today and inched closer to the closing levels from last week at 1.1013 area. The low to high trading range is once again very narrow for the day. The pair has only a 67 pip range vs. a 22 day average (about 1 months worth of trading) of 141 pips. The high reached 1.0989.
German retail sales were better than expectations at 1.7% vs 1.0%. Spain CPI was also a bit higher at +0.4%.
Looking at the hourly chart, the 100 hour MA (blue line in the chart above), held support at the 1.0923. The low reached 1.0925. Holding the level gave traders a technical reason to push higher.
The pair has also been trading above and below what has been a ceiling area (Tuesday and Thursday held this area) at the 1.0949-566 area. This will now be close support for the pair today. The last 5 hourly bars of trading, have seen the price hold support in this area (see chart above). A move below should switch the sentiment more to the downside once again.
On the topside, a move above the high for the day at 1.0989, will have traders looking toward the close from last week at 1.1013 level as the next key target. This level also corresponds with the 50% retracement of the move down from the May 22 high and the 200 hour moving average is at (1.1015). This combination might act as a magnet through the US economic data today (and Greece/G7 headlines as well) if it is cooperative.
Note that today is month end. Also. the range is still very narrow so I am expecting a range extension at some point.
