Staying below 200 day MA
The EURUSD is trading sideways in trading today in a narrow trading range (only 27 pips!). There is not much meat on the trading bone today.
The high has reached 1.0872. That was about 10 pips shy of the 200 day MA at 1.08818. Yesterday, the price of the EURUSD moved above the 200 day MA for the 1st time since the November election, but could not sustain the momentum. The price closed below the line at 1.08618. That may give the pair a touch more bearish bias.
The low today reached 1.0845. The low dipped below the 38.2% of the move up from Friday's low. There was also a ceiling on yesterday around that retracement level at 1.08498. The area is providing some support.
If inclined to sell the EURUSD, there is a "gap magnate" that might have traders thinking lower. Gaps in forex are hard to find as the market is 24/7. So weekends are largely when they occur.
ON Friday, the high in the EURUSD peaked at 1.08177. The low in the first hour of trading on Monday could only reach 1.0824. So there is a gap between those two levels. That gap does not have to be filled anytime soon, but if there is some more bearish clues, we could look to wander down and test the level. A stronger stock market, higher yields, gold heading lower may be contributors to a stronger dollar (lower EURUSD).
Admittedly, I am trying to fit a story to filling a gap, but when you trade 27 pips, guess any story will do. Watch for a break of the 38.2% and staying below for more selling/bearish clues. If not the sellers are not really working hard to go lower.
