EURUSD ping-pong between retracement levels
EURUSD rose early in the New York session and in doing so moved to the next target level, the 61.8% retracement of the March trading range at 1.08825. The high price reached 1.0884 before finding sellers against the target zone.
Since then, the price has declined and traded towards the midpoint of the March trading range at 1.08522. The low price reached 1.08515.
Buyers and sellers play ping-pong between retracement levels. If the 50% is broken, the next target would be the 100-day moving average of 1.08425 (blue line on the chart above). Below, traders would look to the 200-day moving average of 1.0831.
Maintaining the 50% retracement will target resistance at 1.08656 (swing level), the 100-day moving average at 1.08711, and the aforementioned 61.8% retracement at 1.08825.
US CPI data will be released tomorrow morning at 8:30 a.m. ET. On Thursday, the ECB will announce its latest interest rate decision. Will they lay the groundwork for a rate cut in June?
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