EURUSD traders will eye 200 hour MA for support in the early trading
Can it stay above above the broken MA?
The EURUSD rallied strongly in trading yesterday.
- Based on Wednesday at the low from August (and the 2018 low) at 1.1301.
- Extended above a downward sloping trend line (see chart above),
- Moved above the 100 hour MA (blue line now at 1.13658), and
- The 200 hour MA (green line) at 1.13928
The 200 hour MA break saw the price close above the MA for the first time since October 22. That MA (at 1.13928 area - and moving lower) is close support into the new trading day.
On the topside, the high on Thursday stalled at the 38.2% of the move down from the October 16 high> That retracement level comes in at 1.1423. The high reached 1.14237 on Thursday - right at that retracement level. Another key level above, is the 1.1431 level. That was a swing low on October 9th (not shown), and October 19th. It was a high on October 25th after the level was broken on October 24th.
If the bull run is to continue, getting and staying above that area (1.1423-315) will be eyed.
So bulls are in control above the 200 hour MA. Stay above = bullish. Having said that, if the buyers cannot push above the 38.2% and the 1.1431 level as well, the buyers can get frustrated and turn to sellers. So eye that area on any rallies in trading today.