The EURUSD moved higher today and in the process moved above a key swing area between 1.0348 and 1.03657 breaking above that level with momentum gave the buyers the go ahead to push toward the 200 day moving average at 1.04284. That moving average was indeed tested and briefly broken. The high price reached 1.04368 before sellers returned and rotated back to the downside. The current price trades at 1.0395, between the swing area below and the 200 day moving average above.
Through the PPI data, the aforementioned swing level and 200 day moving average will be the support and resistance. Move below 1.03485, and the sellers have more comfort and short-term control (especially after successfully testing the 200 day moving average). Conversely move above the 200 day moving average and the buyers bias increases. The next major target on the daily chart would be the 50% midpoint of the 2022 trading range. Level comes in at 1.05155.
On the downside a break of the swing area will have traders targeting the broken 38.2% retracement at 1.02841 which is candid by a swing area between 1.0273 and 1.02935.
