Stays above 100 day MA at 1.17325 on the dipThe US PPI came in better-than-expected, but the EURUSD traders don’t care. The price moved from 1.1747 before the number to a low of 1.1738 after. That will was still above the 100 day moving average of 1.17326. Staying above that level is more bullish and we have since seen the price move higher. It has squeezed up to a new session high of 1.17637.
Looking at the daily chart above, the 38.2% retracement of the moved down from the September high comes in at 1.17587. We are currently trading just below that level. That is the next target to get to and through for the buyers.
Earlier today the head and shoulders formation on the daily chart finally failed at 1.1673. That helped to kickstart the move higher. In addition to moving above the 100 day moving average at 1.17325, the price also broke above a trend line at the same area. That is key support/risk for longs now.