The EURUSD fell in sympathy with the tumbling GBPUSD since the BOE rate decision near the start of the North American session, and the move to the downside took the price back below its 200 hour moving average (green line in the chart above) currently at 1.05756. The break sent the price down toward the next moving average target at its 100 hour moving average 1.05411. The low price reached 1.05447 just above that moving average level.
Yesterday, the EURUSD price move back above both those moving averages after the FOMC rate decision. The pair closed above its 200 hour moving average for the 1st time since April 20. However, the high price - reached today - fell short of its 38.2% retracement of the move down from the April 21 high. That retracement level cut across at 1.0648. The high price stalled just ahead of that level at 1.0641.
In the London session, the corrective move to the downside did stall against the 200 hour moving average initially, and bounced modestly before rotating to the downside as the GBPUSD fell.
The price action reestablishes the 200 hour moving average as close resistance. Move above and the bias turns more in the favor of the buyers in the short-term.
On the downside, the 100 hour moving average at 1.05411 is now support. Move below and the bears take more control.
The price is trading between the levels at 1.0561 currently and traders will once again look for the next shove either to the upside - above the 200 hour moving average - or to the downside - below the 100 hour moving average.
