Traders have something to lean against but ranges remain light
The EURUSD price and the 100 hour MA are meeting as NY traders enter for the trading day. The 100 hour MA (blue line in the chart below) is at 1.0878 and that is the high for the day. Risk can defined and limited at the level.
Sell right. Sure, but.....
The but is that the range for the day is still an anemic 67 pips. The 22 day Average true range is 124 pips. Yesterday's range was a year tying low of 50 pips. All of this says, look for an extension. So although the 100 hour MA is a risk defining level and the price is currently stalling - suggesting a selling interest, it remains a finger on the button trade. That is if the price moves above the 100 hour MA, I would not be so anxious to be short. So far so good though...
The 38.2% of the days range is at 1.08527. The 50% is at 1.08447. If the test of the 100 hour MA is a short term profit taking/quick trade sell, then there should be should be buyers on dips toward this retracement area (near 1.0852). A move below the 50% would not be such a great thing for those traders looking for the correction off the 100 hour MA being just that (i.e. a correction) and for a rotation through the 100 hour MA. That would muddy the water again (it would start to look like yesterday again with up and down action).
Ranges are narrow and when they are, I expect an extension. However, we have to be prepared for the summer trade (and maybe post-Greece trade) where there is not much excitement - and there for up and down choppiness instead.
PS. There is no US economic news today (nor Canada news either).
