50% retracement and 200 hour MA tested
The 50%/200 bar MA is being tested in the EURUSD. When the 50% and the 200 bar MA come together, it often slows the market down. The 50% comes in at 1.1298. The 200 hour MA (green line in the chart below) comes in at 1.12952. The low got to 1.12993.
Earlier today (in the first post on the EURUSD) I commented of that levels importance specifically stating:
Shaping up as a more important level if the bears are to take more control, is the 200 hour MA (green line in the chart below) and the 50% of the move up from the May 11 low. Those levels come in at the 1.1293 (for the 200 hour MA - it is going higher) and the 1.1298 level. When the 200 hour MA and the 50% retracement converge, it increases that levels importance technically (traders will typically buy against it). To get there today would be a stretch as there are a number of levels before then. So the sledding will be tough, but if the bears can keep the selling going, it has the potential to be on the radar into tomorrows trading.
I thought it would be a stretch...and indeed it has taken a while, but the buyers really did not put up much of a fight today, and if you can't go up, the price might as well go down. That is what the pair has done. With the 50% and the 200 hour MA within a few pips of each other, the action might be done for the day.
Resistance will come in against what was once resistance. If the 200 and the 50% are broken, be aware for increased momentum lower.
For those who need a reminder, check out the video below.
.
