Trades near the 50% of the range since February 28th high
The EURUSD rose in sympathy with the surge in the GBPUSD yesterday. Toward the end of the day, a topside trend line target was tested/breached. However, momentum did slow, and the price started to show signs of weakening in trading today. A spike higher did try to reverse the fall in the early European trading, but fell short of the highs from yesterday.
The subsequent decline, has sent the price below a trend line connecting lows from Monday Tuesday and Wednesday. There was a retest of the underside that trend line which held, keeping the sellers more in control at least intraday. A move back above that level today would turn the bias back to the upside (risk level for shorts).
The pair is currently down testing the 50% point of the trading range since February 28 at the price of 1.12967. Below that level is a lower trend line that connects last week's low with this week's low from Monday. That trend line currently comes in at 1.12917. Move below that level, and other support targets at the 1.1284-89 and the the 200 hour MA at 1.1282 all get in the way.
Note that yesterday, the pair based for a number of hours against the 200 hour moving average (green line) before heading higher. So it should be attract leaners against the level on a test.
So sellers remain more in control with the price action, but ther are a number of downside targets that will need to be broken to tilt the bias even more to the downside (give shorts more confidence). They could also help swing sentiment back around too.
Which way do you like it from here?
