Selling run reverses higher after weaker ISM data
The EURUSD has pushed back above the 50% and the broken trend line at the 1.11522 area after the weaker than expected ISM data. The move weakens the bearish bias. Longs will now want to see the same level hold support.
On the topside, the broken 38.2% comes in at 1.11726. That level is also where the price closed yesterday and would be the next target.
Overall, the price action today tried to crack below the 50%, the 200 hour MA and the 200 day MA, but could not keep the selling momentum going. We now trade back between the 200 hour MA (at 1.11414), and the 100 hour MA above (which is still up there at 1.11908 currently). That is a lot of room (about 50 pips) to roam without tilting the trend too bullish or too bearish.
Traders can lean against the 1.1152 level now and hope the next run will be toward that 100 hour MA. The trade is based on the idea that the shorts had their shot, but they could not keep the trend move down alive. So go the other way.
We will see.
