US Retail sales and PPI miss
The US data in the form of PPI and retail sales both came in weaker than expectations that has sent the dollar lower/the EURUSD higher.
For that pair, the price has moved above the 38.2% retracement of 1.1179 level, and looks toward the next key target against the 100 day moving average at 1.12283. The price is currently trading 1.12200 - just a few pips away.
You would expect that traders would lean against the key moving average with risk defined risk limited with stops above. Traders who were long through the number will often be the ones who put the initial lid on it. They are the happy ones. Shorts are the ones who help keep the big underneath. So expect a correction, but there could be a push above before the day is out.
Watch the 1.1198-92 area for patient support buyers. That is the 38.2-50% of the trend leg higher after the releases. A move below the 1.1192, would muddy the water. A move below that level could see new longs from above the 1.1208 area think about getting out. The level is also near the highs from Wednesday and Thursday.
