Old ceiling from highs on December 3, December 4 and December 14
The EURUSD had a strong ceiling at the 1.2174 to 1.2177 area. The ceiling was built from highs on December 3, December 4, and December 14. Earlier today, that ceiling was broken helped by better-than-expected PMI data. The high price extended to 1.22113.
Since then, the pair has wandered back to the downside and in the process retested the old ceiling (that which was a ceiling becomes a floor). The low price reached 1.21783 and found some modest buying. The current price trades at 1.2191.
Technically, traders are watching the old ceiling and using it to defined risk. Hold above and the upside should be explored further. Move below the new floor and the break is a failure.
Taking a broader look at the daily chart below, the price of the EURUSD also move further away from the swing lows going back to January, March, April 2018 in the 1.2153 to 1.21641 area. That area is also a key bias level as well. If the ceiling on the hourly chart is broken, getting below the old floor from the daily chart at 1.2153-64 would help confirm the failed break and tilt the bias more to the downside for traders.
