EURUSD runs up toward a swing area and finds willing sellers

Swing area between 1.1751 1.17566.  Falling 100 hour moving average above that at 1.17613.

The EURUSD has closed lower for six consecutive days, and in the process moved down to test the low for the year at 1.17035. The low price today reached 1.17053 (just ahead of that low) and consolidated into the CPI data above that area (for 4 plus hours the pair traded up to 1.1718 in sideways trading). 

The "as expected" CPI data, sent the price higher (on relief it wasn't worse than expected), and in the process, moved above the swing high from yesterday at 1.17416 but short of a swing low area going back to July between 1.1751 and 1.17566 (those levels were the lows for the month - see red numbered circles). The price high stalled just ahead of that at 1.17488.  

The price is currently back lower and trades below the high from yesterday at 1.17416.  The day's high before the report was at 1.17248. I would expect that if the buyers are to try to hold onto intraday control, they would support the pair ahead of that level.  However, there is also work to do for the buyers in getting above the July low swing area and the 100 hour MA. 

For now, the intraday bias is a bit more positive, but sellers are not giving up (selling into the rally).

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August 12, 2021 at 01:08AM
Greg Michalowski
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