Shorts from Draghi testimony (and break lower) covering
The EURUSD inches back above the 200 and 100 hour MAs as shorts cover after the Draghi testimony slide and technical breaks.
The price was pushed below the floor/ceiling swing area at 1.1254 and that triggered stops sending the price down to the 200 hour MA, 50% retracement and trend line off recent lows. All those levels came in at 1.12309 to 1.12344. The low reached below those levels to 1.12291 – just below the area. However, selling stalled.
As mentioned, the price has now recovered above the 100 hour MA at 1.12445 and moved to a high of 1.12484 on the hourly chart. The old ceiling/floor level at 1.12543 area should put a ceiling on the run higher. I would not expect that level being breached.
SUMMARY: There was a good run lower on the break of the floor and good support was tested too. So buyers and sellers are battling. However, the buyers on the break above the 1.12543 area was a chance for the buyers to take more control. They failed on the run lower today. As a result, I would expect the buyers to be more nervous and the sellers to lean against the old floor. That is the bias now.