Forex technical analysis: EURUSD moves toward highs as housing data disappoints

Technical Analysis

Author: Greg Michalowski | eurusd

Narrow range for the pair today

The EURUSD is trading in a narrow trading range of 45 pips vs a 22 day average of 72 pips.

 

Technically, the the price has moved back above resistance  at 1.11609 to 1.1171. That area is home to a number of swing levels going back to May18th. Yesterday the price moved below the area but momentum failed.  The price dipped to a low of 1.11566 before the US data today but moved above on the weaker data. Nevertheless, the high after the weaker data was not strong enough to make new day highs.  Price action is lethargic.

If there is a pick up and if the buyers are the dominant (that is debatable, but the price move below support did fail. So I will give the nod to the buyers a bit), the 1.11609-1.1171 will be a level to base off from for the bulls.  The 100 hour MA at 1.1196 is the next target on a move higher.  We currently trade quietly at 1.1171. 

After the break below the support area yesterday, the price should have stayed below the break level. The failure to do so raises an eyebrow to the sellers strength (or lack there of).