Price falls back under the 100-hour moving average
After failing to hold a firm break above the 1.1400 handle overnight, the near-term price momentum is now encountering some trouble as price falls back below the 100-hour MA @ 1.1372. The reversal came about after buyers failed to clear the swing region resistance around 1.1410-20 and the US Q4 GDP report showed that the US economy slowed less-than-expected.
Since then, price fell back below the 100-day MA (which sits at 1.1386 today) and is now taking a peek just under the 100-hour MA as well. This is putting the near-term bullish bias in jeopardy.
There is some minor support around 1.1360 before the 200-hour MA (blue line) is seen @ 1.1355. The latter is a key level to watch out for in trading today as a break below that will see sellers regain near-term control.
Of note, there are large expiries sitting at 1.1350 rolling off later so be wary of that ahead of US trading. That could potentially draw price action to the downside for the time being before things become clearer later in the day.
I would still argue for shorts just above 1.1400 and similar to yesterday, unless price firmly breaks above 1.1420, there's reason to still believe that upside remains limited around those levels ahead of the ECB meeting next week.
