EURUSD moves lower as strong US data sends the pair lower

The EURUSD was shoved lower despite the 25 basis point hike by the ECB earlier today. Better US a data is supporting the US dollar and sent the pair below its 100 hour moving average currently at 1.10835.

GDP was higher-than-expected. Durable goods was better-than-expected. Initial jobless claims were better-than-expected. Even the trade deficit was better-than-expected

Lagarde gave the pair another push to the downside after saying the “near-term outlook deteriorated”.

Risk for short is now for a move back above the 100 hour moving average. More conservative risk would be a move back above the broken 38.2% retracement of the July trading range at 1.1106. That level has been a barometer for bullish above/bearish below.

On the downside, breaking the 50% midpoint at 1.10539 would have traders targeting the 1.1010 – 1.10267 swing area (see chart below).

This article was written by Greg Michalowski at Source