Through the ups and downs in the EURUSD, the support and resistance has been well defined

The EURUSD started the trading date near highs for the day and also testing its falling 200 hour moving average and downward sloping trendline on the hourly chart below). The level came near 1.09000 level.

The ADP report showed a eye opening 497K new jobs with leisure and hospitality adding 232K, education and health services adding 74K and construction adding 97K. That turned the dollar around as yields moved higher. The ISM nonmanufacturing data also contributed to increased dollar buying.

Technically, the fall took the price just below the low price from earlier today and also the low price from last week’s trading. Those lows (see green number circles 4, 5, 6 on the chart below) came between 1.0831 and 1.08344. Each of those levels sniffed the 100-day moving average which is at 1.0826 (and the 50% retracement of the move up from the end of May low at 1.0823).

So through the ups and downs of trading in the EURUSD today, resistance is defined against technical levels (200-hour moving average and downward silver trendline on the hourly chart), and support was defined against prior lows and the 100-day moving average (and 50% retracement). In between those levels, the bias is neutral.

Move above the topside resistance and the bias is more positive/bullish. The swing high from last Friday and Monday at 1.09329 would be the next upside target.

Conversely, move below the 100-day moving average and 50% retracement level increases the bearish bias with traders focused on a swing area near 1.0800 followed by another swing area between 1.0778 and 1.0789.

This article was written by Greg Michalowski at Source