200 hour MA, 50% retracement and topside trendline stalls the rally.
The EURUSD has continued the corrective move higher in trading today, but has run into a cluster of resistance defined by the:
- 200 hour moving average of 1.19683
- Topside channel trendline at 1.1973
- 50% retracement of the move down from the March 3 high (and month high) at 1.19739
The high price reached 1.1973.
The ECB announced that PEPP purchases to be significantly faster in the next quarter. That has helped to send the the EURUSD back down as well.
Looking at the hourly chart, the pair is retesting it's broken 38.2% retracement at 1.19411. A move below that level with next looks toward 1.19317 area (swing area). Move below that, and the pair would be close to retracing the gains for the day (the pair closed at 1.19277). A move into negative territory could see more liquidation from the dip buyers seen over the last few days. The lower channel trendline and the 100 hour moving average at 1.1898 would be in play.
With the cluster resistance holding, it increases the areas importance between 1.19683 and 1.19739. It will take a move above that area to give the buyers more control.
