The EURUSD pushed lower in the European session and in doing so broke below the 100/200 hour MA and a swing level at 0.99796. The low price reached 0.99705. Sellers had their shot below the 100/200 hour MA and the swing lows seen recently on the hourly chart (green numbered circles), and missed. The sellers turned to buyers.
The run back to the upside has seen the pair move to - and now above a swing area between 1.0022 and1.00328. The price is currently trading at 1.0050 as buyers retest the earlier high for the day. The high reached 1.00593. Staying above the swing area has been difficult to maintain. However, buyers are making a play now. Can they keep the momentum going?.
Last Friday, the price spiked above the 38.2% at 1.00782 on the back of the lower than expected Core PCE data in the US. However, the momentum could not be sustained and the price moved lower (helped of course by the Powell speech at Jackson Hole). The 38.2% is the next key target. If the buyers can not get and stay above the 38.2%, the correction of the move lower is simply a plain-vanilla correction in a bearish market.
The buyers are making a play. The 1.0022 is now close risk for the bulls/buyers.
