Also watching the 1.1735 level
The EURUSD got better inflation data from Germany and a little weaker US GDP (than expectations), and that has helped to propel it higher. The price spike took it to a high of 1.1752, but momentum could not continue. The price has moved back down to 1.1714 on the last two hourly bars.
That low remains above the 1.1711 level. The significance?
The 1.1711 is the high price from August 2015. That high had not been breached until this week.
Admittedly, the price has been above and below the 1.1711 level this week (4 hourly bars traded above and below it today). However, the last two bars have kept above. Just saying. Buyers are trying to hold the line.
Now, the topside is not all smooth sailing unfortunately. The 1.1735 is the 38.2% retracement of the move down from the 2014 high. We did go above today, but failed. The price needs to get back above it in this bounce higher.
If that level is broken, the high for the week peaked at 1.1776 and the 200 week MA comes in at 1.1794 (see green line on the chart below). All those levels are the steps higher and could put up a roadblock for the buyers.
For now, the 1.1711 is holding. That is good news for the buyers. Key level for me today. Get above the 1.1735 now.
