Finds supports support at 38.2%.
The EURUSD today made new highs in early in the London trading session, but weaker Industrial Production data out of Italy and France started to weigh on the currency. Technically, the pair took out the high from last Thursday at 1.13785 by about 7 pips and failed. That too contributed to the more bearish tone.
The 125 pip or so fall from the peak took the price to the 38.2% of the move up from the Employment day low and that level held. The price move higher off that low today, pushed up to the high from Monday at 1.1345.(high stalled at 1.1346). The market is defining bullish and bearish extremes with the 1.1345 above and the 1.1256 below. Having said that we also have the question of the double top at last week and this weeks highs and the 100 hour MA below. Those become further target to get above or below.
I would guess, that if I were to ask the masses, we might have a group that says the EURUSD should go higher and another group the EURUSD should go lower. The crowds are congregating and lining up on either side.
Ultimately, the crowd will decide and the price will trend away. In the meantime, traders can buy a dips and sell expensive against the extremes outlined with stops on breaks.
