The battle lines for the buyers/sellers in the choppy trading range
Yesterday, the 100 hour MA found early buyers and the price bounced (see blue line in the chart below).
Today, the price fall in the Asian session dipped below the moving average level by a few pips only to fail and reestablish the moving average line as support. The price moved higher and proceeded to extend above the Friday high at 105.694. Like the break of the 100 hour moving average, momentum failed and the price dipped back to the downside.
The last few hours of trading have gone up to retest that the Friday high at 105.694, only to find sellers. That level will need to be broken for the buyers to take more control (and stay above of course).
On the downside, the rising 100 hour moving average currently at 105.445 (and the 61.8% at 105.466) represents the support target. If the sellers are to take more control, getting and staying below that level would be eyed.
When you get the price action seen today with minor breaks and quick failures, it can frustrate traders. It also is indicative of a market that is unsure of the next move and awaiting the next shove. Which way that comes can be a coin flip. That is why we trade with the choppy up and down price action.
However at some point, there will be a break and run away from the technical support and resistance levels. Be aware be prepared is the mantra for such a market.
PS On a break lower, traders will be eyeing the swing lows starting at 105.289, 105.239 and 105.199.
On a break higher, getting above 105.822 would next target the 106.000 level.
