EUR/USD Retreats After Extending March Highs

 

 

The EURUSD inched to a new move high reaching 1.3817. Since then the price has moved back lower and the pair stands below the close from yesterday at the 1.3775.  The price is also now below the 100 and 200 bar MA on the 5 minute chart at the 1,3776 and 1.3784 levels respectively.  On the downside support next comes out at 1.3750 and 1.3729. These levels are the 38.2% and 50% of the weeks low to high trading range.  The 100 hour MA comes in at the 1.3720. This level should also support. A move above the 1.3784 level is needed to excite bulls from this point.

 

 

It is not like the EURUSD is all that bullish but it is more that some of the bearishness from Greece, etc has lessened (S&P take off watch yesterday as an example). The longer term resistance at 1.3852-73 remains a target to the upside, but the shorter term technicals must support.  IF they show lack of momentum, then we get the corrections that move the pair back lower, creating the big stair step moves.  In these instances, the 5 minute charts and moving averages and old highs/lows become levels to lean against and use as profit taking points.  Patience, good trade location and not over trading are the keys in these types of markets until that time, when the market can shake itself out of the slump.