EURUSD Surrenders Asian Gains, 1.1166 Offers Support
EURUSD managed to break above the 100 and 200 day moving averages today but after that the pair retreat breaking below the 1.12 zone and down to 1.1178. Germany Factory Orders s.a. (month over month) came in at 2.5%, above topping expectations of 0.5% in June the annual Factory Orders n.s.a. came in at -3.6%, beating expectations of -7% in June.
In the hourly chart the bulls now are in control as the pair trades above all major hourly moving averages. The pair tested the 50 hour moving average at 1.1165 and managed to rebound. Intraday traders might initiate a long position targeting the 1.1249 daily high. A stop loss to 1.1131 at the 100 day moving average must also be placed for reducing the downside risk as that will signal the return to the downtrend channel.
A short position targeting below 1.11 mark can initiated if the pair cross below 1.1122 the 200 hour moving average, with a stop loss order at 1.1167. In the case EURUSD breaks below 1.11 the downward move will accelerate down to 1.1026 and then at 1.0950.