FOREX NEWS AND COMMENTARY

The EURUSD eased back down after the NY surge higher. The move to the highs stalled a the 1.3644 where three separate attempts above the level were tried and failed. Omie, a FXDD fan, pointed out, the level corresponded with the 50% retracement of the move down from the February high to the February low (see chart above).

The correction to the downside has found support buyers against the 38.2% retracement of the days move (1.3609 low versus 38.2% level at 1.3607).  The price  found buyers which has taken the price back toward the earlier high for the day.  (see chart below).

The 1.3338/44 level is the next upside target resistance (trendline and the 50% level cited above on the daily chart).  I expect intraday sellers against the level with stops on a move above

Watching EURUSD corrective selling levels for clues

The EURUSD surge higher took the price from 1.3546 to 1.3644 in a short period of time as shorts were forced to cover.  The surge higher was likely helped by the selling that forced the pair down earlier in the day.  The market traders got caught. They were forced to cover.

Now the question is are there more shorts out there. In which case, expect to see buyers emerge between the 1.3615 to 1.3626 level.  These levels represent the highs from earlier in the day.   The other key level to hold would be the 1.3607 level which is the 38.2% of the surge higher (see chart above).  

So far, the correction has only come down to the high from the first few hours of trading today. IF this is the least the market can do, it suggests the shorts are still caught and worried, and a move to the 1.3662 

level is the next target and could happen quickly.

sources:forex news and commentary by fxdd.