Early gap lower stalled near swing area and bounced
The EURUSD opened sharply lower in reaction to the shortfall the Turkish lira over the weekend (and general dollars buying). However, the pair tested a swing area ahead of the March extreme (the extreme reached 1.1835 back on March 9) between 1.1864 and 1.18677 (the low reached 1.1863) and bounced.
The price has since climbed back above other swing area between 1.1881 and 1.18857, and 1.1909 and 1.19129. The last breaks have been above the 100 hour moving average of 1.1965 and the 200 hour moving average 1.19262.
There is some stall as the price moved above the 200 hour moving average. The high reached 1.19309 and backed off a bit. The current price trades at 1.1923. Close risk would be the 100 hour moving average of 1.19165. Stay above keeps the buyers more control. On Friday, the price moved above its 100 and 200 hour moving averages near the 1.1924 level but could not sustain momentum above the levels.
Buyers are making a play (again). Can they keep the momentum going? A break below would target the 1.1909 area. Move below that and the 1.1881 to 1.1886 would be eyed again.
Overall, it is also getting crowded with the swing areas on the downside. That suggests buyers on the dips like we saw today.
On more momentum today, the 38.2% of the March trading ranges comes in at 1.19411. The 1.19667 to 50% at 1.19739 would be the next target followed by 1.1991 ceiling area.
