The EURUSD is up testing the 100 hour MA (it actually went above the 100 hour MA by a few pips) and although it is trying to hold below, some of the mojo from the straight line move down is gone. Sellers don’t feel totally committed. If they were, the price trend would have rolled over when it had a chance and the trend down would have continued.
Morevoer, on Capitol Hill, what was supposed to be a discussion on the economy and what the Fed and the government has done and has to do, has turned to a discussion LIBOR manipulation. People forget that the lower LIBOR may have benefitted those who had loans fix at lower, manipulated rates. So fine the traders who were looking in their best interest but remember, banks were also trying to stop runs on their banks. Perhaps manipulating prevented lines at the bank and eased some of the pressure on the central banks.
Anyway, a move above the 100 hour MA will muddy the water for the trend. It does not take out the thought that the range will be extended, it just opens the door for a potential move higher as well as lower. For today’s trend potential, the buyers had to take back control from the sellers… and they have.
