Lots of MAs below. Ceiling above
The EURUSD is settling between a pretty good ceiling at 1.18235-275 and a series of MAs below.
Looking at the hourly chart below, the low today was able to get below a number of road blocks:
- The 100 hour MA was broken (blue smooth line at 1.17913 now)
- The 50% of the August range at 1.17856
- The 100 bar MA on the 4-hour chart (step blue line at 1.1778 currently)
- The trend line connecting the low from last week and the low from this week. That cut across at the same level of the 100 bar MA on the 4-hour chart.
The final MA target on the downside was not tested/approached at 1.1765. That is the 200 hour MA.
A move below those road blocks should solicit more selling with 1.1756, the low from Wednesday at 1.1739. The low for the week at 1.1730. Looking at the daily chart, a trend line cuts across at that level too (see chart below).
On the topside, the resistance target is more concentrated. That comes in at the ceiling at 1.18235-275. The high today stayed true to the ceiling, stalling at 1.18274. A move above that area would be a bullish signal for the pair and would next target the 1.1846 level. Above that and the 1.1876 is the swing low from June 6, 2010 (not shown). Remember that level on a run higher. The pair did break above that level earlier in August, but the looks above could not be sustained.
