200 hour MA/50% form a cluster to lean against
The EURUSD is trading higher today with most of the upside done in the Asia-Pacific session. In the European session, the price has corrected and then moved up one last time. That push extended the days range by less than a pip at 1.07166. The 200 hour MA at 1.0718 and the 50% of the move down from November 12 at 1.0723 gave traders a level to lean against (For a video on that dynamic see: Forex Education: The 50% retracement and 200 bar MA Trading Rule). Risk could be defined. Risk could be limited. In a market that may be searching for it's identity with continued Fed ambiguity, trading near key risk defining levels is what traders will be focused on.
What now?
The pair is currently testing another level that has been a key area over the last few weeks. That is the area between 1.0683-90. There has been support and then resistance in this area going back to November 10. The 100 hour MA is at the level too. Testing that right now. We did go below that level earlier but failed. What happens now? A move below will have sellers felling better again.
