EURUSD moves back into consolidation area. What do you need to watch today in the EURUSD

The EURUSD moved higher in the early US trading and in the process as it reentered into the “Red Box” (see chart below), that was the value area until breaking lower yesterday (between 1.0886 and 1.0973). The price is currently testing the low swing area within that Red Box between 1.0886 and 1.0896. Recall from yesterday the price corrected back into that area and found willing sellers against the 1.0896 level before rotating back to the downside.

In trading today, the EURUSD continued to run lower rating below the next target area at 1.0842 – 1.0848. The low price reached 1.0833, about 10 pips short of the 50% midpoint of the move up from the May 31 low at 1.08229 and the rising 100-day moving average at 1.0819.

When next?

Get above 1.0896 and traders look toward the falling 100 and 200 are moving averages at 1.09120 and 1.09218. Move above that and it opens the door for rotation toward the high of the Red Box.

The market made it through the Core PCE data this morning without it being any worse and expectations. Although at 4.6%, versus expectations of 4.7%, it is still well above the 2% target that officials are looking toward. Nevertheless the dollar is moving lower on the release. US stocks are also higher with the NASDAQ now up 139 points and the Dow Industrial Average 181 point.

This article was written by Greg Michalowski at Source