Technical Analysis

EURUSD bounces ahead of the 38.2% retracement

The  EURUSD  move sharply lower on the back of the run into the USD after stronger data today. The price moved down to and through recent swing lows at 1.06787, 1.0661 and the swing area between 1.0633 to 1.0641. What was not reached was the 38.2% of the move up from the May 13 low at 1.06187.

The last 5 or so hours have seen a modest bounce. The high reached 1.0660, just short of the first upside target. For trader looking for more upside (or resumption of the move up from the May 13 low), the risk is still at the 38.2% retracement with closer risk against the 1.06336

The upside targets are the levels that were broken to the downside today including 1.06787, 1.0696 and the 200 hour MA at 1.06995. A move above the 200 hour MA would then look back toward the 100 hour MA at 1.07312.The price in the early European session today tried to extend above that MA line but quickly stalled and moved back down.

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