If you have been looking for directional market, think again. The “fall in like” with the market proved true again in the EURUSD as it took out resistance at the 13140-46, but failed. It was time to dump Ms. Long and date Ms. Short again.
If the pattern continues, traders will once again look to switch partners at the 1.3102 area. The now redundant 50% of the 10 day range (at 1.31027), 200 hour MA (it is at 1.3100 now), 38.2% of the weeks range (at 1.31036) create the attraction for the change. Traders who use the level can always do a quick switch of partners below the level and sell on the break. Then hope for the momentum to continue.
Let’s face it…if you are trading the market, being nimble and noncommittal would have been the best strategy today. The markets reluctance to being committed is suggesting a comfort with the current level. Coincidentally, the 100 day MA at the 1.31298 today sits in the middle of the range. The price closes below the level 4 days ago, above it 3 days ago, below it 2 days ago, above it yesterday. Can we assume below today? In any case, the market is getting comfortable at the MA level.
