Price now tests the 100-hour moving average
Buyers are now testing a move to get above the 100-hour MA (red line) and also to break away from offers lurking nearby at 1.1600. The high touched the figure level but has since backed off though the tug of war around the 100-hour MA continues.
For sellers, stay below the red line and near-term bearish momentum is still in place. As for buyers, move above and it will eliminate the bias that is favouring sellers for the majority of the last one week.
Although buyers have done well in bidding price higher today, there is still work to be done. Further resistance is seen at Friday's high of 1.1611 followed by the 200-hour MA (blue line) @ 1.1638. The latter will be a key level to look out for if we do break away from the 100-hour MA to the upside.
If buyers are able to move above the 200-hour MA as well, it will reinstate a near-term bullish bias in the pair and we could very well see a re-test of the 1.1700 level once again.
However, the price action over the last two days have done little to change the longer-time frame pattern in the pair:
Head and shoulders pattern still very much intact
