The EURUSD moved higher with the lower dollar after the PPI. That is in the right direction for it and the CPI, but the PPI often takes a backseat to the CPI and other inflation numbers including the PCE price data.
The dated push the price above its 200 day moving average 1.0428. The high price reached 1.04806 before rotating back to the downside. Buyers tried to call the price above the 200 day moving average, but when that moving average is broken, there was disappointment and a rotation back to the downside. The low reached 1.03799.
On the downside, there is a key swing area between 1.03485 and 1.03657 (see red numbered circles on the daily chart above). The buyers are to keep control, there should be buyers against that risk defining level. A move below and traders will look back toward the 38.2% retracement at 1.0284 as more more disappointment reenters from the dollar sellers/EURUSD buyers.
The pair is back to where the price was before the data. The 200 day MA becomes the upside resistance target, while the swing area below becomes the downside support target.
