Price is now trading back below the 100 hour MA
The EURUSD started the New York session making new session lows going back to April.
In an earlier post, I spoke of the 1.17809 level as a level to eye on a move higher intraday.
Dip buyers, who want to stick their toe in the water, would want to see a move back above the 1.17809 (was the low going back to July 7) - and stay above that level - if they are to take more control.
The price moved above the 1.17809 level and sellers turned to buyers. That buying has seen the price race up and extend back above the 100 hour MA, on its way to in test the 200 hour MA at 1.18245.
Sellers have leaned against the 200 hour MA, and the volatile price action has now seen the price move below the 100 hour MA at 1.1807. The price is trading at 1.1805 currently.
What now?
The 100 and 200 hour MAs have become barometers for the technical bias now. If selling intensifies below the 100 hour MA, the buyers above that MA (and from the break above the 1.17809 level as well) will lose some of their confidence. Meanwhile, the risk focused sellers against the 200 hour MA would feel more confident.
However, if the price moves back above the 100 hour MA, and then runs back above the Asian high for the day at 1.18131, we could see another run toward the 200 hour MA.
Finally, what we also know is the sellers had their shot below the low from July 7, and from last week at 1.17708. The buyers also had their shot after breaking the 100 hour MA and testing the 200 hour MA. That too may be failing (the test of the 200 hour MA certainly found sellers).
That leaves the 100 hour MA as the focus now, and the barometer for the buyers and sellers going forward. Who will take control as the London/European session works toward the close? Watch the price action at the 100 hour MA in what has been a volatile session for the pair.
