Below 50% of the last trend leg higher.
The earlier post on the EURUSD I focuses on the hourly and daily chart (CLICK HERE). The EURUSD moved higher and tested a swing area on the daily chart, but backed off. Again, see the prior post and charts outlining the levels.
Focusing on the price action since peaking using the 5 minute chart now, the price has moved lower quickly and in the process has now moved back below the 50% of the last leg higher at 1.19236. The price also moved back below a broken trend line just above that level. That increases the bearish bias a bit and takes some of the steam out of the trend move higher.
On the downside however the 100 bar moving average (blue line) remains a key barometer for the bulls and bears. Since yesterday, the price has been able to mostly stay above that moving average. Yes there were some dips below in the early London session, but overall momentum could not be developed and support reestablished against the moving average line (see blue circles 8 and 9). The rising 100 bar moving average currently comes in at 1.19138. If the price is to move lower, getting and staying below that moving average line would be a clue for sellers.
So sellers/profit takers are making a play in the pair, but there is a little more work to be done if they are to take more control.
