The EURUSD is consolidating in an up and down trading range. The high to low trading ranges only 38 pips. The 22 day range is 65 pips. There is room to roam. Yesterday the range is only around 39 pips.
The narrow trading range has seen up-and-down price action with the high price stalled within a swing area between 1.1359 and 1.13682. The high price reached 1.13684 and rotated to a session low at 1.13305. The current price is back up trading at 1.1356 near the middle of the trading range and just above the 50% midpoint of the range since the December 15 low at 1.13514.
What are the technical clues in play?
- The price on Tuesday stalled near a rising trend line. That trendline cuts across at 1.1316 (and moving higher). The 61.8% retracement is also near that area at 1.13206. Holding above that trendline helped to stall the three day fall and helped lead to the modest rebound since that low.
- On the topside, a break of the 1.13682 level would help the bullish bias but getting above the 100 hour moving average at 1.13768 and the 200 hour moving average 1.13845 would give buyers more confidence that the low is in place
Currently with the range muddling along at 39 pips, the buyers and sellers are more in a battle between that support and resistance levels. The lines in the sand have been drawn. Traders await for the next shove
