Moves back below swing area at 1.1225-29.
The EURUSD has backed off the highs after the better than expected ADP report today.
Looking at the daily chart, the high for the day stalled at the 38.2% of the move down from the move down from the March 2019 high at 1.12386. Last week the pair bottomed near a lower trend line connecting the December and March lows. The low bottomed at 1.11094. The rebound has seen the price rise 3 straight days. Today would be the forth if the price can stay above the 1.12144. We currently trade at 1.1224.
Drilling to the hourly chart below, the pair is currently trading below the swing area at 1.1225-29. That area is defined by lows on April 18 and highs (after the break lower) from April 23/24 and again in yesterday’s trading. Earlier today, that ceiling was broken on the way to the high for the day at 1.12389. A lower trend line comes in at 1.12144 – which is also near the closing level for yesterday. A move below would tilt the bias a little lower. PS the 50% midpoint of the move down from the April 17 high comes in at 1.12163. A move below that would give a little more negative tilt too.
Sellers are trying to take back some control from the 4 day rally, but they have work to do to get more of a tilt in their favor. Moving below the 1.1214 level willl be needed to get more confirmation. A move back above the 1.1229 would ruin the sellers efforts.