EURUSD corrects higher into overhead resistance

The EURUSD has corrected higher in trading today and the softer-than-expected core PCE data helped to push the price to a new high for the day at 1.1032. That move did extend above a swing area up to 1.10267, but overhead resistance defined by the 50% midpoint of the July trading range AND the falling 100-hour moving average near the same level at 1.10539 may have attracted some sellers. The price correction off of the low also moved within the 38.2% retracement – 50% midpoint of the week’s trading range. Recall from yesterday, the high price stalled against its 200-hour moving average before moving sharply to the downside on better US data.

Looking ahead, trading back below the 1.1000 level could see more selling with the next target between 1.09618 and 1.09759. Move below that level – and the swing low today which bottomed near the high of a swing area between 1.09329 and 1.09421- would be targeted.

On the topside, unless the price gets above the 50% midpoint in the 100-hour moving average, the sellers remain more control.

This article was written by Greg Michalowski at Source