EURUSD Rebounds Sharply Above 1.10
EURUSD is trading 0.41% higher at 1.1015, in an impressive rally that started from yesterday’s low at 1.0925. On the data front Eurozone Retail Sales drop 0.6% in July, matching expectations, the yearly reading on Retail Sales came in at 2.2%, topping expectations of 2% in July. Germany Markit Services PMI came in at 54.8 beating expectations of 54.4 in August. France Markit Services PMI came in at 53.4 topping expectations of 53.3 in August.
EURUSD outlook is neutral now for the short term as today broke above the 100-hour moving average and the 1.10 psychological figure. Bears are in control for the medium term as the pair trades below all the major daily moving averages. Important support now stands at 1.10 mark and then at 1.0968 the daily low, which if breached will encourage more bears to join the action and drive the price down to 1.0925 YTD lows and then the 1.0838 low from May 11th 2017.
On the upside, immediate resistance stands at 1.1023 today’s high and then at 1.1047 the 200-hour moving average, a break above can lead prices up to 1.11. Long positions can sit comfortably as long as the pair trades above the psychological 1.10 mark. Bears need a break below 1.0968 to take the upper hand.