EURUSD bounces off of swing area support
Earlier today, I spoke of the EURUSD 100-day MA holding support after the US CPI. If the level could not hold support, a probing back toward the swing area between 1.0777 and 1.07868 would be the next downside target (see green number circles). That is exactly what happened. True to the technicals, support buyers did show up near the low of that swing area, keeping the bias in the favor of the buyers in the process.
As always, if support holds on the downside, the focus returns to the resistance above. That resistance came against the 100-day moving average at 1.0806, AND the 38.2% retracement of the move down from the April 26 high at 1.08108. The price has indeed moved back toward those levels but stays below each (so far at least).
So the battle continues for traders. It would take a move above 1.08108 to increase a bullish bias with the high price from May 22 at 1.08304 and the swing area above at 1.0842 – 1.08485 (see red number circles in the chart above) as the next key targets.
If you want to hear the technical story, see my video below. If you like the video, click the thumbs up and you can always share on social media too….