Falling 100 hour MA with 20 pips
The EURSUD is off to a slow start with the pair up about 4 or so pips from the Friday closing level. The pair currently trades at 1.1131.
Last week, the pair moved to a new 2019 low last Thursday after the ECB decision but could only muster a 6 pips extension below the 1.11064 low from May 23. The low reached 1.11007. The failure to run lower, short covering and the admission that a vote to cut was not discussed helped to push the pair to an intraday high at 1.11872.
The pair did move back lower on Friday but stalled the fall at 1.11114 – short of the 1.1100-064 swing low area. The modest rise has the pair above the Wednesday low of 1.1126 and other swing lows at 1.1125 on Thursday and Friday. PS The 1.1115 level was a swing low from May 30.
Short term price action at the start of the week is trying to build off the 1.1125-26 area. Stay above, may give some shorts some anxiety. On a move higher the falling 100 hour MA at 1.11503 will be eyed. The high from Friday was also at that 1.1150 level. So I would expect some fight on a correction to the level with stops on a break above.
On the downside, the 1.1115, 1.11064 and 1.11000 are obvious downsides hurdles that if broken, should solicit more downside price momentum.