40 pip range...
The EURUSD is off to a slow start for the week. The range is 40 pips. The price action - like the GBPUSD - has been down and back up. The price is above the closing value from Friday (closed at 1.0879) but not by much currently. But we ARE up on the day. Yippee.
Fundamentally, the European PMI data was encouraging but as Ryan pointed out in his European morning wrap, "On another day, in another lifetime, European data, the likes of which we saw today, would have seen a decent price move." Sure we are up, but not by much.
Can we do something more? You would think that 40 pips is not going to be it for the day. The question comes, higher or lower?
We just moved down to the 38.2% of the move up today at 1.10883. The 100 bar MA on the 5-minute chart was broken. The trend line was broken. But we are back above both. Was that the breathe it needed to make a move back higher? Well, what it did do was somewhat solidify the correction level as a stronger support. Stay above and the buyers can explore. Move below and the waters get more muddy.
PS a move back below the 50% and the 200 bar MA at 1.0879 would look more bearish intraday.
PSS US stocks are opening with solid gains. The US debt market is little changed from Friday levels (yields are unchanged out the curve).
