Price back above the 200 hour MA
The EURUSD has rebounded a bit higher after the worse than expected ADP jobs report.
The pair has been stepping lower into the NY session after weaker data out of Spain and Germany overnight. The pair also was influenced to the downside after failing on the break of 1.2000 yesterday (the high reached 1.2010 and quickly reversed lower). That was a key level and test, and the buyers failed to push higher.
Technically today, the price fell below its 100 hour moving average in early European/London trading near the 1.1900 level, and then the 50% retracement at 1.1886. Those breaks increased the bearish momentum, and the price moved even lower to test the 61.8% retracement of the move up from the August 27 low AND the 200 hour moving average. Both levels are converged at the 1.18566 level. The early New York session low also dipped below that old ceiling level from August 24 and August 27 at 1.18495 to the low for the day at 1.18446. However, momentum could not be maintained and the weaker ADP data gave the pair a little boost.
The price has move back above its 200 hour moving average and traded to 1.18759. That is still below the 50% retracement level at 1.1886. It would take a move above that level to give buyers a little more control. If the price is going to rebound staying above the 200 hour moving average and 61.8% retracement would be needed (at 1.18566). Failure to do so and the ADP made just be a volatile data blip from the past.