The weaker-than-expected ISM nonmanufacturing data – with prices paid full and sharply – sent the EURUSD sharply higher and above its 200 hour moving out at 1.07983 and a swing area between 1.0795 and 1.08063. That is now close support. Staying above is more positive in the short-term for buyers looking for more upside momentum.
Conversely, sellers looking to sell the corrective move higher, have decent resistance being tested and just above. More specifically, the EURUSD is currently testing the 38.2% retracement of the March trading range. That comes in at 1.08219. Just above that at 1.08323 is the 200 day moving average. For sellers, you would not want to see a move above the 200-day moving average. That would likely open the door for further upside momentum.
In this video I take a look at the technicals driving the EURUSD pair. Can the buyers keep the momentum going? Will the sellers lean against resistance now?
This article was written by Greg Michalowski at www.forexlive.com. Source