European low 1.1774. NY session low 1.1776. High for the day tested 100 day MA at 1.17988
The EURUSD rallied up from a European low ow 1.1774 toward the 100 hour MA and the 100 day MA at 1.17988. The high extended to 1.18028 - 4 pips above the 100 day MA level but backed off without much momentum.
The fall took the price back down to the European low (the price reached 1.1776 vs 1.1774 European low). We currently trade at 1.1785 area. The 100 hour MA (blue line) comes in at 1.17908. The 100 day MA is at 1.17988. The 38.2% of the move down from the Dec 1 high comes in at 1.18098.
For the month of December, the trend has been lower. On Friday, the pair rebounded after the US employment report. The low before report on Friday tested a lower trend line on the hourly chart above).
Today, the pair moved above a top side trend line in the Asia-Pacific session. That is a bit more bullish (at least corrective).
Going forward, if the pair is to correct higher, traders will need to see more momentum and move back above the 100 hour MA (at 1.17908), the 100 day MA at 1.17988 and ultimately the 38.2% at 1.18098. That is the minimum for the bulls to start to exert more upside momentum.
To give the buyers some reference, there is a base at 1.17748 now (see green circles in the chart above) and that level held in the NY session. So buyers have some hope.
However, if that base is broken, the buyers today, could easily turn around and call the correction over - at least for the time being.
