The pair backs off toward close at 1.1595
The EURUSD has moved higher for the 2nd consecutive day. The price closed yesterday at 1.1595 and after a dip to support at 1.1586 in the Asian session, the buyers entered and pushed to a high of 1.16238.
The price came off and reached a low since then at 1.1597 as the US claims data came in below 300K for the first time since the start of the pandemic. The PPI data was mixed. Staying in the black for the day is keeping the buyers in play at least. Getting above a swing area at 1.1607 to 1.1613 will be eyed now for more bullish intraday clues. Break above and the swing high from October 4 at 1.1640 and the 38.2% retracement of the move down from the September high at 1.16705 would be the next major targets.
Conversely, a move into the red (below 1.1695) would be a disappointment, as would a move back below the 1.1586 level (swing leve) Move below those levels, and buyers should give up on the “we are correcting higher”, with a revisit of the 200 and 100 hour MAs at 1.1572 and 1.1566 eyed.
PS. Remember the weekly chart. The 200 week MA is at 1.15691. The price moved above that MA yesterday and stayed above it today. The 100 week MA is at 1.16085. The price also moved above that level but is below that level now. If the price can move above the 100 week MA, and stay above, the buyers would feel more empowered. Absent that and that dynamic may weigh on the chance for more upside momentum.
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