The bell rings at the 1.0700 area and traders get antsy
The EURUSD is down modestly on the day. The pair squeezed higher in the Asian Pacific session but started to lose momentum as European traders entered. Moving averages were broken (see blue and green lines on the 5-minute chart below). The close from yesterday was broken at 1.0741. The 1.0700-05 area was broken, but a bell rang, Pavlov's dogs salivated and they bought the dip.
On Tuesday this level was broken , some time was spent below as the low for the week was set at 1.06736. However, the price moved back above the area, tested it on one last dip, and rallied. Yesterday, the best the pair could do was a couple prints near 1.0705. As mentioned, the price dipped below it today but moved back higher. The last look at the level shows that buyers bought 1.07068. The force field is holding the floor. On the topside now, the 50% of the move down today held the correction at the 1.0735. The 100 bar MA is near that level on the 5-minute chart. This area should solicit some selling. We will see if the sellers can hold the line.
The 1.07000 force field was started when on the US employment day, the EURUSD tumbled to 1.07018 in the 1st minute and never touched it again until Tuesday. That put the level in the traders mind and although Tuesday saw the extension lower, the extension failed and the 1.0700 area held before rising. The break today should have sent the pair lower but the buyers have the price back up toward 1.0730 once again (is a base forming for something more).
PS. Note the high today did get above the 100 hour MA but ran into the underside of the broken trend line and stopped. Remember that line if the price starts to move higher...
