3 bars tested. 3 bars hold support
In an earlier post, I outlined the 100 bar MA on the 4-hour chart as a support level. Fast forward, and the MA has now stalled the fall on 3 separate bars. There is a pattern developing. Support at the 100 bar MA is attracting buyers.
On the topside, the corrections have been limited. The price is currently trading at 1.1935 which is the highest corrective price. As outlined earlier, a move back to the 38.2% at 1.19466 is a target, followed by 1.19607 (high from November).
Drilling to the 5 minute chart, the price has been able to work above the 100 bar MA a 1.19256. That is closer risk (ahead of the 100 bar MA on the 4-hour) for traders. Stay above and the correction can continue. Targets on the 5-minute include getting and staying above the 200 bar MA on the 4-hour and then the 50% of the day's range at 1.1945. That level is close to 38.2% retracement level from the 4-hour at 1.19466.
So buyers continued to lean, and there is some signs that buyers are at least trying to take more control (with the move above the 100 bar MA on the 5-minute - that is close risk now for buyers). However, if the low is in place, the buyers will still need to see more hurdles above taken out.
