The EURUSD has found a friend in the 200 bar MA on the intraday 5 minute chart today. The MA line (green line in the chart above) has been tested on 3 separate occasions today. Trend line resistance also comes in at the level. The EURUSD is holding the line and keeping the bears in control.
To break a trend, the buyers need to prove that they can take control. How do they do that? By moving the price above the technical levels that give bullish and bearish bias. The 200 bar MA line (green line) and dwonward trend line is a key level today that will give bullish or bearish bias. Stay below this line(s) and the shorts remain in control. Move above it and it is step one for a correction potential. From there a move higher can be considered, but only as long as the next targets are reached and breached (i.e. the 38.2% at 1.2480, the 50% at 1.2498 – see chart above).
