Traders use the 200 hour MA to hold the line....
In an earlier post, the early NY session was showing some bullish bias. Specifically, I said:
"On the topside. the range for the day is still low at 56 pips. So if there is support at the 1.0600 area now, the pair could see a move toward the big green line above at the 1.06286. The 38.2% of the move down from the Nov 19 high comes in at 1.06357. This area should find sellers."
This is the chart from earlier...
Well, the 200 hour MA target was reached (the high reached 1.0628) and the sellers entered on queue and the price has rotated back down.
So the buyers had their run to resistance. The patient sellers have good trade location against the 200 hour MA. It is a matter of the flows now with support seen at the 100 hour MA still and resistance at the 200 hour MA providing the bookends for traders to lean against.
