EURO TESTS 200 WEEK MOVING AVERAGE

The EURUSD pair has moved sharply higher, following a surprise negative reading from the U.S producer price index for the month of July, which is a measure of inflation the U.S Federal Reserve watches closely.

At present, the euro is trading around the 1.1770 level, after being strongly rejected from the pairs 200-week moving average, found at 1.1783.

The EURUSD pair is now bullish on all time frames, with short-term trading momentum strongly bullish whilst trading above the 1.1754 level.

Key intraday resistance for the euro is found at the 1.1783, 1.1802, and 1.1824 levels.

Downside support is found at the daily pivot, at 1.1754, and the former weekly price low, at 1.1723. Critical weekly support is again found at the 1.1713 level.