The EURUSD has chopped to a new high for the year and in doing so extended up to test the 61.8% retracement of the trading range for the pair since the 2021 high. That level comes in at 1.1274.
The high price today reach 1.12749 just one PIP above that target level.
The price of the EURUSD has rotated back to the downside. Retail sales in the US were a little bit stronger if you look at the control group and the revisions. Will there be some dollar buying (lower EURUSD).
Technically, the consolidation seen over the last 3 trading days, although with an upper bias, has allowed for the 100-hour moving average to catch up with the price. That moving average currently comes in at 1.1202. The current price trades around 1.1233. The 100-hour moving average will be a key target to get below if the sellers are to take more control. A move below that would then target 1.11841 which was a swing area from the daily chart (see video).
If the price can get below the 100-hour moving average and the 1.1184 level, there should be further downside of probing in the pair. Absent that, the sellers are still not winning.
This article was written by Greg Michalowski at www.forexlive.com. Source