EURUSD waiting for the next shove
The EURUSD has seen the price action move up and down and up back up again in trading today.
The high in the late Asian/ early European session peaked right near the 100 hour moving average (blue line in the chart above) currently at 1.1832. The subsequent moved to the downside stalled just ahead of its 200 hour moving average (green line) currently at 1.17938.
Currently the price is back up testing the 100 hour moving average at 1.18321. The market is waiting for the next shove outside of this moving average range.
Get above the 100 hour moving average, and traders will be looking toward the 1.1840 level. That was the underside of the broken trend line. It also was a swing high going back to October 20 and near other swing levels on October 21 and October 22. At the high earlier today price also stalled near that underside of the broken trend line level. Above that and the downward sloping trendline cuts across currently at 1.18517.
Having said that, the price is having trouble getting above that 100 moving average level. Stay below, and sellers feel more confident to push the pair back to the downside (risk is defined against the moving average level). That is, the trading battle between buyers and sellers is still on.
On the downside watch the 1.1814-17 area as an interim bias level. Move below and traders will be looking toward the 38.2% retracement 1.18067 before the run toward the 200 hour moving average.
Ping-ponging between moving average levels (100 200 bar moving averages) is a condition whereby traders are unsure as to the next directional break. Traders leaned against resistance at the higher moving average and buy against support against the lower moving average. Eventually there will be a break, and hopefully a run in the direction of the break. For now, the EURUSD remains within the confines of the extremes.
