The EURUSD has continued to move up and down as the trading week comes to an end. Recall from Tuesday, the parable sharply higher after the lower-than-expected CPI data. That took the price up to a high of 1.0867. On Thursday, the price extended above that level but only to 1.08949.
Today we price moved down to a new low since Tuesday at 1.0824, but that was still well short of the 200-day moving average down at 1.08046, and the 100-day moving average at 1.07905. Staying above those moving averages keeps the buyers in play/in control.
Having said that, what keeps the current battle going on between the buyers and sellers is the price has been trading above and below the 50% midpoint target of the move down from the July high. That level comes in at 1.0861. The price has moved back above that level, but is remaining below the Tuesday/Wednesday highs at 1.0867.
When the price trades above and below a key technical barometer like the 50% midpoint, it’s just the market traders are unsure of the next move. Traders are waiting for the next shove.
For the trading week, the EURUSD is up 1.69% and traded to the highest level since August 31. The CPI was the catalyst for the pair (and for the lower USD). However, the stall near the 50% of the last trend move lower has taken some of the momentum out of the traders sails. Getting and stay above that midpoint level (with a move above 1.0867 giving more confidence) is needed to put more wind in the buyers sails.
This article was written by Greg Michalowski at www.forexlive.com. Source