The 100 hour MA at 1.1382 stalls the upside momentum, but correction limited so far
The EURUSD moved higher in trading today with the following bullish hurdles breached.
- Based against trend line support.
- Moved above trend line resistance.
- Moved above the 200 hour moving average above (green line in the chart)
- Tested by stalled at the 100 hour MA (blue line in the chart). Well this is not so bullish but remains the next upside target if the buyers are to remain in control today.
The holding of the 100 hour MA has seen the pair correct modestly lower after the better than expected housing data (the pair remains above the 50% midpoint of the days trading range at 1.13548 level). The 100 bar MA is on the 5 minute chart is also near this level. This area is close support/risk level for longs.
Taking a broader view....since bottoming most recently on September 23, the EURUSD remains more bullish. Looking at the 4-hour chart below, the pair is
- Holding support trend line below,
- Holding above the 50% of the move up at 1.12996.
- The corrective topside channel was broken today (1.1343 currently).
- We are above the 100 and 200 bar MA on the 4-hour chart as well (blue and green lines)
A dip to buy against the 1.1354 area? Folks the pair can go either way. There is an extreme at the 100 hour MA. There was an extreme at the lower trend line today. The price is nearer the midpoint. The .range is not that great at 63 pips (the average is 100 pips over the last 22 days). SO there is room to roam....to extend the trading range. I think the midpoint can be a risk defining area for dip buyers, but trading can go either way from here. It will depend on the flows.
