Makes a run above the 200 hour MA
The EURUSD has moved to new session highs and in the process printed an hourly bar close above it's 200 hour MA (green line at 1.0588). Earlier in the day, the price did move above the line, but then dipped back below the line (closing below). For longs, that line is now support/risk.
Looking back a week, the pair opened last Monday at the highs. The pair moved lower - bottoming on Wednesday. By Friday, we were trading back in the Monday trading range. The price did tumble back lower- falling bellow the 1.0600-03 area was a catalyst for a fall. Today, we just peaked at 1.06024. We are back at the break lower level from Friday (and near the low from a week ago).
Do traders lean here?
The EURUSDs move above the 200 hour MA IS more bullish technically. BUT the EURUSD has had trouble keeping the bid in the pair as French election uncertainty should keep a lid on rallies
IS the 1.0603 a level to sell against? Well, it would look better on a break back below the 200 hour MA at 1.0586. That is a target that needs to be rebroken if this pair is going lower.
What would not be so bearish. I think if traders get more comfortable above 1.0600 (we are trading at 1.0602 as I type), we could get a move to the 1.06175 high from Friday and/or the 100 bar MA on the 4-hour chart at 1.06286 level today (we still have a relatively narrow trading range for the day at 52 pips vs the 22 day avg of 78 pips).
So a key area being tested for the above reasons. Will the price stall? We will see.