Forex Trading: Consolidation Sets In For EUR/USD

The EURUSD had a quiet night trading overnight.  The Industrial New Orders for April came in at -1.0%, below the expectation at 0.0%.  Last month was revised higher to -0.2% from -0.8%.   Nevertheless, the measure has now declined for 9 straight months and the year on year is at record low levels at down -35.5% (see chart below).  Orders for Intermediate goods fell 0.7%, durable consumer goods fell 0.9%, and capital goods fell 2.4%.

The low reached 1.3919 - in the 1st hour of trading. The high was 1.3983.  The close yesterday was 1.3929.  The last 6 days have seen the price move up and down in sequence.  If the pattern continues today, it would be an up day.  So far that is the case. Watch the 1.3929 level as a key intraday level today.

The 200 hour MA comes in today 1.3918.  The price action has not been able to close below this level over the last 2 days.  The 100 hour MA is at the 1.3955.   Both are moving sideways and nearly converged.  The market is consolidating.

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