The EURUSD is testing the 200 hour MA at the 1.2384 level (and 38.2% of the move down from November’s high at 1.23814).
The move higher today, has taken the price above a trend line line that was support then resistance on Friday’s trade last week (see blue circles). That level comes in at 1.2373 (see chart below). The price also moved above the lows from November at the 1.2357-59.
The move higher also puts the price of the EURUSD back in the consolidation area that controlled the pair in November (see post from yesterday at: Forex Trading Analysis: EURUSD moves closer to the November consolidation area) . The price of the EURUSD should not have moved above this area for the sellers to remain in control. It now has. If the bears are to take back control, it must move and stay below this area. Until then, the buyers remain the aggressor and the ones in control. Other topside targets include the 1.2400 area and 1.24229 which is the 50% of the move down from the November high to the December low (see chart below).
The EURUSD is testing the 200 hour MA at the 1.2384. A move below the 1.2373 and then 1.2357-59 is needed now to turn the tide back lower.
