The 1.1712-17 area
The 1.1712-17 area has been a level of focus this week. It was swing lows in Nov/Dec of 2017 and the 38.2% of the move up on the daily chart from the Dec 2016 low. Yesterday the price cracked and closed below the level. However, we are back above the level in trading today. The bump up in the claims today is helping to push the price away from the level. We currently trade at 1.1733.
For traders, the buyers are taking control above the level but there is some work to do.
Drilling to the hourly, the work that needs to be done for buyers includes:
- Getting above the 100 hour MA at 1.1753
- Getting above a trend line at 1.1767, and then
- Working toward the 38.2% of the move down from the May 14 high at 1.1797 and the 200 hour MA at 1.18048
All those levels could be thorns in the buyers side, if the market should stall against any of them.
Risk for longs is a break back below 1.1712-17 area. I would think that if rebroken, the longs would not have a warm fuzzy feeling.
Do you think a bottom may be in place?
SUMMARY:
Right now, the failure below the 1.1712-17 is suggesting the sellers are failing on the break and buyers are taking (trying to take) back control.
Can the buyers take more control?
If so, they need to show they can keep the corrective bias going.
If they can't....(i.e. stay above 1.1712 -17 area), get out...
----------------------------------------------------------------------------------------------------
