100 and 200 hour MA confines the pair
The EURUSD over the last two days, has been confined mainly to above the 100 hour MA at 1.15838 and below the 200 hour MA at 1.16239. There has been two tries to get below the 100 hour MA - one yesterday and one today. Both failed with limited downside momentum (see lower red shaded area).
At the 200 hour MA, yesterday's high got with 5 pips of the MA. Today, the closest it got was 8 pips. In fact, the swing high from late yesterday and for today stalled at the 1.1619 level which happens to be the swing low from July 27th. With the 200 hour MA at 1.16239 (and moving lower). those levels are working toward convergence. If the price is going higher that area would need to be broken.
The bias is a little more to the downside for the pair still.
- The price is lower
- The highs over the last two days are lower
- The price can't get to the 200 hour MA
- At least the sellers have been able to crack the 100 hour MA
However, the price does need to get and stay below the 100 hour MA to get traders more excited about the downside potential. So far, the momentum from the market is just not there to go too far either way, but keep your eyes open.
