Sellers could not keep the Friday momentum going at the start of the trading week
The EURUSD fell sharply (higher USD) after the better than expected US jobs report on Friday. The tumble lower took the price below its 100 day moving average (currently at 1.10633) and 200 hour moving average (green line currently at 1.10514) on its way to a session low of 1.10392.
The break of the 200 hour moving average proved to be short-lived, and the rebound Center the price between the 100 day moving average above and the 200 hour moving average below.
Today, the price open within those boundaries, but could not extend lower below the 200 hour moving average on the Asian session dip. As a result, sellers gave up, buyers took the price back above the 100 day moving average and now we trade between the 100 hour moving average above the 1.10806 and the 100 day moving average below 1.10633. The pairalso tested the 50% retracement of its move down from last week high 2 last week's low at 1.10775.
The corrective move, take some of the "bear" out of the Friday move. However, the sellers have showed up against the 50% and the 100 hour MA. I would look for those sellers to try and keep that lid on the pair in the early North American sessions with stops on a break above.
Sellers wiill definitely want see that 100 day moving average rebroken at 1.10633. Get below, and there could be resumption of the downward momentum with the 200 hour moving average at 1.10514 (and rising) the next target level to get to and through.
