European/London traders may be squaring.
The EURUSD has moved above the 50% of the day's trading range at the 1.0625 level.
The first test of this level held against the resistance level. The sell off from that level took the price back below the 100 bar MA (blue line in the chart above), but the 1.0600 level and the broken trend line held support. The pair has been consolidating back above the MA but below the 50% until the recent break.
I think it is likely weekend squaring, but it also comes from traders who are taking clues from the technicals. The trend momentum started to fade when the buyers started to take back some control. That made the trading more two-way. The holding of the 1.0600 level and move back above 100 bar MA simply gave the buyers more confidence. Sellers meanwhile became more nervous. Add the weekend, and you get flows dominating.
100 bar MA remains support. Above the 61.8% along with the low from yesterday and 61.8% of the days range make the 1.06387 the next target. Back and forth thin-ner Friday trading begins.
