100 hour MA broken but back unchanged
The EURUSD has moved back higher since NA traders entered for the day and trades near unchanged on the day as traders await the US retail sales report for February (-0.2% for the headline and +0.2% for the ex auto and gas and control group). PPI and empire manufacturing will also be released at 8:30 AM ET>
The pair was able to breach the 100 hour MA (currently at 1.1089 - now close support) in the London morning session- trading at low of 1.1071 - but traders have yet to push the price below 38.2% of the move up from the Thursday ECB rally that saw the pair trade with nearly a 400 pip trading range.
So although the price is off the highs set on Thursday's rocket ship, the buyers remain more in control (the sellers need to breach that 38.2% level to be more serious). The 50% retracement (of the move down from the high) and downward trend line at 1.11447 is a key level above in trading today. The 38.2% at 1.1065 remains a key support level/target if the sellers are going to prove they can take control (see chart above).
Look for a quick, illiquid move off the retail sales. Risk is increased.
