Corrects to retracement levels and bounces
The EURUSD continued the move lower that took the price back below its 100 hour MA yesterday. That fall on the hourly chart stalled at the 38.2% retracement of the move up from the Jan 9 low. That low came in at 1.2167. The low for the day reached 1.2164.
Looking at the weekly chart below, the 50% retracement of the move down from the 2014 high came in at 1.2166 - just 2 pips off the day lows. I think it safe to say, the retracement support from the hourly AND the longer term weekly chart, held support.
The subsequent rebound today (see hourly), has now taken the price back above the rising 100 hour MA (blue line in the chart above). The MA comes in at 1.22247. The high for the day has stalled against a topside trend line on the hourly. That trend line comes in at 1.2248.
So a battle between the buyers and sellers is underway.
Get above the topside trend line at 1.2248, and look for increased upside momentum with the week's swing highs as targets.
If the price were to move back below the 100 hour MA at 1.22247, the sellers will be winning and 1.2194 and the 1.2166 area will be back on their trading radar.
