Getting above the 100 and 200 hour MA is key if the buyers are to take more control
The EURUSD is mired in narrow 31 pip trading range to start the week.
That range saw the price move below a swing area between 1.2147 and 1.21516 at the day's low, but that break was short-lived (see blue numbered circles).
THe price has now risen back up toward the 100 hour moving average and trades just below that moving average level at 1.21764 as I type. A move above would next target the 200 hour moving average at 1.21892. Getting above that moving average would give the buyers more confidence and should push the price higher.
Conversely, stay below and the bias remains tilted more to the downside.
So overall, there is a little something for both the buyers and sellers in Monday trading.
- Buyers are grasping onto the failed move below the 1.2147 level.
- Sellers are grasping on the price remaining below the 100 hour moving average.
At some point that battle will be resolved. In the meantime, risk focused traders can continue to lean near the extremes and hope there is not a push to and through. If so, those same traders may close - and even reverse as the 31 pip trading range is just too narrow.
