Holding a support area in the 1.3110-25 area
The cluster of MAs were tested into the close yesterday and early hours of the Asian session. Those moving averages included the 100 hour moving average, 200 hour moving average, and the 100 hour moving average on the 4- hour chart. The 50% retracement of the moved down from last week's high was also a level of resistance at 1.3180 area. Those technical levels stall the rally and the price rotated back lower.
The low today has so far stalled in an area defined by the number of swing levels on the hourly chart (see red numbered circles in the chart above). That area comes between 1.31096 and 1.31254. The low today stalled at 1.31188 - between those levels.
The current price is below the 100 hour moving average of 1.31436. That represents an intraday ceiling for traders now. Stay below that MA level is more bearish. Move above and there should be more buying. On the downside, traders will be looking for a move below the 1.31096 level, and then the key 100 day moving average that comes in today at 1.30936 (blue step line in the chart above).
Right now - like the USDJPY - traders are trading (not trending) and looking for a break with momentum. The 50% and MA cluster held the rally. Can the floor area and the 100 day MA be broken again? That is what traders will want to see going forward if the pair is to get out of the range trading.
