Downward sloping trendline and 200 hour moving average stalled the rally.
The EURUSD broke above its 100 hour moving average for the 1st time since June 16. As outlined in an earlier post, the highs from last Wednesday and Friday both stalled against that 100 hour moving average. A move above would be more bullish.
Indeed when the price cracked above its 100 hour moving average (blue line currently at 1.1227), the buying momentum increased and the price spiked higher.
That move did have a limit however, the downward sloping trendline connecting recent highs along with the falling 200 hour moving average at 1.1270 and 1.12711 respectively, stalled the rally and the price rotated back to the downside.
With that dual resistance level above and the successful test, it might lead to buyers turning to sellers on rallies with stops on a break above.
On the downside watch the 1.1240 is a potential support level. The big level for longs looking for more upside momentum is the 100 hour moving average at 1.12271.
