Another up and down session
The EURUSD is moving up the unchanged mark for the day in an up and down session.
Technically, the pair tested the 50% retracement of the move down from the July 31 high at the 1.0980 at today's peak (see chart below). At today's low, the price tested an area that has had a series of swing lows and highs (see green numbered circles) and was also close to the 100 hour MA (blue line in the chart below) at 1.0918 (the low reached 1.09248) and trend line prior to the employment volatility. Feds Fischer's comments seemed to appease the buyers, but traders are finding some reluctance to move higher at the 1.0963-67 area where the pair closed on Friday (I have 1.0963. Bloomberg has the close at 1.0967).
If the price can stay below the close, watch the 200 hour MA as an important technical level today. It comes in at the 1.0946 level. Earlier in the Asia-Pacific session, the price found support buyers in that area. In the London morning session, there was a move through with momentum. If the sellers are to take back more control, a move below this level – and staying below the level – will be needed/eyed.
Overall, today looks like last week with a little bearish a little bullish. This is the summer for you. Trading remains non committed and that leads to up and down action. Feds Lockhart is scheduled to speak. Perhaps there is some movement off his comments. Wath the 200 hour MA for clues.
