EURUSD retraces the gains as the pair ping-pongs between retracement levels

The EURUSD moved higher in the early NY session and in the process moved to the next target level at the 61.8% retracement retracement of the March trading range at 1.08825. The high price reached 1.0884 before finding sellers against the target area.

Since then, the price has rotated lower and has traded toward the midpoint of the March trading range at 1.08522. The low price reached 1.08515.

Buyers and sellers are ping-ponging between the 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 that, and traders would look toward the 200 day moving average 1.0831.

Holding 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.

The US CPI data will be released tomorrow morning at 8:30 AM ET. On Thursday, the ECB will announce their latest interest rate decision. Will they lay the pipe for a June rate cut?

This article was written by Greg Michalowski at www.forexlive.com.