200 hour MA, 38.2% retracement approached
The EURUSD is moving to new day lows as the US trading day gets underway. The pair is approaching support in the process at the:
- 200 hour MA at 1.13714
- The broken 38.2% of the move down from the February 3rd high at 1.13701
- The 1.1372 was a swing low going back to November 2003 (not shown).
- The 50% of the weeks trading range at the 1.1356
This was my line in the sand area at the start of the trading week for the pair. Up until yesterday, the pair found sellers below the level (really the 200 hour MA did a good job of keeping a lid on it during that period). Yesterday, was the break higher. What was resistance, becomes support. As a result, there should be buyers against the level. The only caveat is the range for the day is very narrow. So be patient. The traders today may wait for a the 1.1358 area (old high for the week) to put a toe in the water.
