Technical ceiling at 1.1219 area broken after Case Schiller data but quickly reversed
The EURUSD has respected a ceiling at the 1.1219 area. The 200 hour MA and the 38.2% of the move down form the March 17 high both come in at the area. The high yesterday peaked at the level as well.
The pair just peaked above the level after the Case Schiller report and backed down. Were traders looking for stops? The pair traded to 1.1224. It is currently trading at 1.1212. Earlier today the pair moved below the 100 hour MA (blue line in the chart below) and quickly reversed. Are traders playing "stop games" at the extremes?
With Yellen the lead event of the day and her words anticipated, the flows will dominate. It could be a choppy trade as a result. With the quick move above resistance and quick move back down, if there is another test, traders will be eyeing if the buyers are really for real. They need to get and stay above that key resistance level to convince the crowd.
