Pop goes the EURUSD

Just when the EURUSD was looking more bearish below the 100 and 200 day MA, a headline comes out about the ECB tapering QE. That sent the pair sharply higher. The price action took the price above both daily MAs. The spike stalled against the 100/200 hour area (at 1.12128-19 area). Fast break the other way.

With the price back above the 100 day MA I would guess that traders between against that level now as support once again with stops on a break below.

Event risk can come out of the blue, and this was one of those instances. Technically, it turned bias from more bearish to more bullish in an instant. It also is a jolt to traders as it was unexpected. That can lead to more caution in trading and less liquidity. As a result there has been a swing lower. However, that swing down did successfully test the 100 day MA (see 1 minute chart below). We are up testing the 200 hour MA at 1.1219. Key level.