The 1.1435-65 is important but is 1.1426-28 preempting the level?
The EURUSD had an up and down ride today especially in the early hours after the Yellen text was released. Since the initial volatility, the price action has found support at the 200 hour MA (green line in the chart below - also see earlier post). The upside resistance has been developed against the 1.1426-28.
Looking t the chart below, the pair has a number of swing levels at that area. Yesterday, there was a spike above. That move took the price also above the 1.1435-65 level that I have been highlighting in the EURUSD technical posts. That area is now being preempted by the 1.1426-28 level. Stay below keeps a lid on the topside..
Like the sentiment expressed in earlier posts, the price cannot pick up steam until the 100 and 200 hour MAs are both broken (and stay broken). Looking at the chart above, the 200 hour MA held support on Friday. On Monday, the price dipped below the 200 hour MA but could not get to the 100 hour MA. Yesterday, the 100 hour MA and 200 hour MA held. Today the 100 hour MA has been breached, but the 200 hour MA has stalled the fall.
If the price can breach the level, the sellers should start to increase (and hopes of a break higher gets delayed or put off).
So a close ceiling at 1.1426-28 level with a stop above 1.1435 Get below 1.1400 and the 200 hour MA at 1.1392. Those are the steps.
