Tests a swing area
The EURUSD bottomed on Friday, moved up yesterday and into today's session, but has rotated lower over the last 6-7 hours of trading. The price action over that time period took the price above and below the 100 and 200 hour MAs which are converging.
The convergence of MAs is indicative of a market that is up and down and searching for the next move. Since peaking last week at 1.1431, the price action has seen corrective action lower, with fits of rebounds mixed in.
Today's high did briefly move above a downward trend line, but could not sustain upside momentum. The subsequent move back below the 100/200 hour MA has tilted the bias lower once again.
The new low today just tested a swing area going back to June 4 at the 1.12676 to 1.12753 area and held. The 61.8% of the move up from last week's lows is also in that area at 1.12657. Dip buyers stuck a toe in the water. A move below that area would be another tilt to the downward direction today.
Resistance remains at the 100/200 hour MA. Traders who shorted on the break back below, would not like to see a move back above that level.
