Momentum builds to the downside.
The EURUSD has moved lower as the ISM data points to positive. Ironically, the manufacturing jobs were horrible in the employment report today - coming in at -29K. Last month was revised to -18K from -16K. The employment component did remain negative in the ISM report (and was down from the prior month at 48.1 vs 48.5).
Technically, the EURUSD has pushed lower and tests the mid-March highs at the 1.3136-41 area (see daily chart above). Below that area, is the broken trend line which comes in at 1.3125 today. The low price just reached 1.3134.
Looking at the hourly chart, the 38.2% of the move up from the March 24th low comes in at 1.1325. That corresponds with the broken trend line on the daily. That should increase the levels importance.
What about topside resistance now?
The 1.1365-75 area looks like it should stall rallies if the sellers wanted to keep a lid on it. The high price from March 30 comes in at the level. The low from the Asia-Pacific session, stalled at that level. The I.1375 was the high price from Feb 11 (was the year high until yesterday's move higher). I would expect sellers to lean against this area now (a move above and shut the screens off for the day).
