Trading in the EURUSD has grinded to a near stop. With the market on pause, it is a good time to put the day’s activity into perspective.
The market tried the upside on the opening and failed when it moved above the high from Friday’s trade (at 1.3376). The subsequent move lower took the price below the 100 hour MA (blue line) at the start of the NY session. That selling momentum extending below the 200 hour MA (green line) at the 1.3288 level. Like the failure on the topside, the attempt to push below this MA support level resulted in a failure, and a move back higher ensued. Currently, the pair is looking to end the NY trading day at equilibrium levels, near the close from Friday/near the 100 hour MA/near the midpoint of the days trading range.
Speaking of the range, the low to high trading range was 102 pips – below the 113 pip average over the last 20 days, but better than what existed when NY entered the fray today (about 50 pips).
Was anything decided as far as direction? Not really. I would consider the day a draw. Like marrying your sister. Like Ham on Rye.
What we did learn from a technical perspective is:
- There is currently a reluctance to move above the 1.3372 level
- On the downside, the 1.3277 to 1.3284 level has a similar reluctance to extend.
- In between the extremes is the 100 hour MA at the 1.3324.
This MA may likely be the pivot for bullish and bearish as the market decides direction for the week. The good news is there should be enough data to satisfy trader’s interest. So although the day was ham on rye in retrospect, more can be expected going forward.
