The Asian session did nothing for the continuation of the bullishness for the EURUSD pair. When trend line support was broken on the 5 minute intraday chart after the price held 200 bar MA resistance, the days 1st BREAK lower was made (see chart above). The decline stalled at the 38.2% of the move up from the August 22nd low, rose right up to the 100 bar MA and resumed the move down (2nd BREAK). If the pair was up on EU optimism earlier in the week, it is down today on EU pessimism. Such is trading, but I do like the way the action tracked the technicals.
So we open in NY making new day lows. The next target below comes in at the 1.24864 level. The low so far has reached 1.2497 (close but with the range at 74 pips, there is room for further exploration lower). This level was a the high from Tuesday’s trend day and a ceiling before the FOMC meeting minutes on Wednesday. The 100 hour MA comes in at 1.2469. Look for traders to at the least pause at this level. The 38.2% of the trend move up from the August 16th low come in at 1.2461 so there should be buying.
With the trading today following the technicals, traders are likely to use the 1.25092 as close resistance (not real strong) , followed by the 1.2523-277 level
. Aggressive buyers above this level could shift the sentiment. It is Friday and action could be influenced by squaring in front of the weekend.
