Trades midrange currently
The EURUSD tested the 61.8% of the move up from the October 2019 low at 1.10162. The low for the day reached 1.10145 and bounced. If the 61.8% retracement level is broken, we could see a rotation toward the 1.100 level followed by the 1.1090 area (see daily chart below). The move higher stalled ahead of the 1.10392 swing low from December 6. A move back above that level could see more probing to the upside with the 50% retracement at 1.10587 and the 100 day moving average at 1.10661 as key levels on the topside for this week. Moves above each of those levels would weaken the bears technical bias.
Drilling to the 4 hour chart below, the 1.1028-316 area was a swing high ceiling from November 25 to December 6 (see yellow area). Above that sits the swing low from December 6 at 1.10392.
On the downside from that chart, the low today stalled against an old trendline (see green numbered circles). Admittedly on Friday, that trendline was broken but could not be sustained. The line has reestablish itself as support since that failed break. Should the line be broken, that would open up more downside momentum (PS the low trendline also corresponded with the 61.8% retracement on the daily chart. So there were a couple reasons to stalled the fall technically at that area).
Overall the low to high trading range today is only 22 pips. So there is room to roam either to the upside or to the downside. The 22 day averages 47 pips. Currently intraday, the buyers probably have a little bit of an edge. The price is above the closing level from Friday. The prices also back above the 100 and 200 bar moving averages on the 5 minutes chart (see the chart below) and the 50% retracement of the days trading range at 1.10257. Having said that, there is a lot of up and down price action, it is still not far from those support levels. So the bias can shift with not much effort. Nevertheless, the buyers are making more of a play NOW intraday.
