Pair back below the rising 100 hour MA.
The EURUSD is mired in another up and down like trading day.
On Monday the pair moved higher after bottoming at the 200 hour MA (green line), and extended that run higher on more short covering on Tuesday. However, at the Tuesday highs, sellers leaned against the 38.2% of the move down from the September high at 1.16705. The high reached 1.16687 and fell back down.
Wednesday saw up and down trading as the gains were consolidated. The low reached 1.1616. Thursday tried to move to a new high but backed off into the close and closed near the low from Wednesday at 1.1616 (the low reached 1.16188 - just above the Wednesday low).
Finally in trading today, the pair moved back higher into the European session, but has retraced back down toward the closing level from yesterday (at 1.1619 area). The low just reached 1.16238.
The pair since Tuesday has waffled in a range between 1.1616-11618 to 1.1666-1.16687 in up and down trading (see red box). Those lows were also near highs from last week at 1.16238 and 1.1618 (see red circle 1 and 2 in the chart above).
The price yesterday did move below the 100 hour MA (blue line) and closed below that MA level but when the price could not get below the support swing area (see lower yellow are), the price moved back above it today.
The price is trading back below the level as the ups and downs continue.
What next?
The week summary, gives defines the trading range seen since the peak and the technical reasons.
ON the topside the high stalled just ahead of the 38.2% of the September trend move lower.
On the downside, the highs from last week, became support since Wednesday between 1.1616 and 1.16238.
The 100 hour MA is a intraday barometer but traders are unsure.
IT will take a move below the 1.1616 level to increase the bearish bias now. On a break the 200 hour MA at 1.1607 will be eyed. Move below it, and selling should increase.
Alternatively, if the price can get back above the 100 hour MA and stay above, the high for the day would be targeted and then we could see a run back toward the highs for the week over time.
