EURUSD moves back for a retest of the 100 day MA

Technical Analysis

Author: Greg Michalowski | eurusd

The 1.11618 level was broken and the price momentum tilted back to the downside.

The EURUSD has moved to new session lows after the pair moved back below a swing area at the 1.11618-67 area. In the earlier post, I commented that "On the downside if the pair starts to trade back below the 1.1168 again, the buyers may give up and look back toward the 100 day MA for another test at 1.11335."

The 1.11618 level was broken and the price momentum tilted back to the downside.
That is what is in the process of happening. 

Looking at the 5 minute chart below, the 1.11618 level was broken and after a small retest, the momentum turned as the buyers gave up and turned to sellers.  

The pair is now comfortably in the red. However, the 100 day MA at 1.1133 still should be a respected support level (the price is trading at the lows at 1.1137). Look for buyers to lean against the 100 day MA on the test, with stops on a break and more momentum below the level.

Why?  The break above the 100 day MA was the first since August 13. Getting above and closing above on Friday was a break where buyers took more control. I would expect the buyers to try and keep that bias in their favor.  Time to step up bulls.   

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose