EURUSD reaches the 100-day moving average
US non-farm payrolls came in stronger than expected. This led to the US dollar and EUR/USD rising to new lows during the week.
The down move has now reached – and is now through – 38.2% of the up move from the May 1 low. This level comes at 1.08134. Below that there are 100 days to take them to 1.08062. The low just reached 1.0805. The price pushes against the main MA target. Can sellers sustain the 'push' down through this level? If so, the next major target area comes against the 200-day moving average at 1.07859. The 50% midpoint of the May trading range is at 1.0782.
Typically, buyers will rely on the key daily moving average at first glance. However, they will need to get back above the 38.2% retracement level at 1.08134 soon to translate buying into more confidence in finding a temporary bottom. Moving above that, traders will be looking towards 1.0825 – 1.0829 as the next target (low of Monday trading). I expect sellers to lean toward this level if it is reached as sellers look to maintain control after today's bearish breakout. .
