100 day MA held support on Friday. 200 bar MA on 4-hour chart held today.
The buyers are taking more control in the EURUSD in trading today. Friday the 100 day MA held support at the lows. Today the 200 bar MA on the 4-hour chart held. Buyers in the London morning session against that MA line, are the big winners in trading today.
What else an we take away from the chart above?
The trend line connecting highs starting from August 18th (and tested at the highs last Thursday) was broken at 1.1248. That is bullish and a key break for traders.
You will note that the line was broken on September 8th and even briefly on September 15th, but the breaks were rejected (the one September 15th was only 2 or so pips and only for a minute). After the September 15th break the line was reestablished by traders at blue circles 4 and 5. Today, the break of that line has been a catalyst for more buying momentum.
IN addition to that trend line, the 50% of the move down from the August 18 high to the double bottom at the 1.1122 level, has the 50% at 1.12439. That too was broken in trading today (more bullish technically). Staying above each of those levels will be eyed as risk for longs in trading today (and going forward in the week). IN a market that is struggling with direction and keeping a bias, this is an attempt by the buyers to take control.
The next targets become the 61.8% at the 1.12727 level and other swing highs seen over the ups and downs since the mid- August peak (at 1.1283 and 1.1326 to start - see chart above).
Buyers are in control. Can they keep it today/this week. Look for buyers on dips toward the 1.1243-48 area.
Draghi speaks later today at 11:05 AM ET/1505 GMT)