Trades near the middle of the post data range
The EURUSD also had an up and down reaction to the 8:30 AM ET US data. Of technical significance, is the low stalled right around the ceiling area from the end of last week/early this week. That area comes around the 1.0619 and that is where the price action stalled.
The holding of the line give the buyers some advantage from a technical perspective. The buyers won that test on the first go. The pair traded below that line early in the session but found support near the 1.0600 level. The sellers failed on their test.
Does it mean we go racing higher? Not necessarily. Action is choppy and the highs are coming up short of the highs from yesterday. However, it does give traders (sellers and buyers) a level to expect action IF there is a break down the road.
As I type, the price on the 5-minute chart shows another dip toward the 1.0619 area. The price reached the 200 bar MA and bounced modestly (green line in the chart below). Is the defense of the floor being weakened that will lead to a break? Or are the buyers digging in and will hold for another move higher? A key intraday trading level.
