Trade at new session highs. but having a difficult time of it...
The EURUSD and the GBPUSD have extended to new session highs. The EURUSD extended the high by 8 pips. The day's range is now 51 pips. The GBPUSD extended the high by 12 pips. It's range for the day went from 77 pips at the NY opening to 89 pips currently. Yippee. That is the good news for bulls. The bad news for bulls is the moves are running into sellers despite the breaks.
The move higher in the EURUSD extended above the topside trend line at 1.1396. The high extended to 1.1409 (above the prior high at 1.14013). I mentioned in my earlier post the 100 hour MA remained as resistance above at 1.1417. On Unemployment Friday, the EURUSD got close to the 100 hour MA (blue line in the chart above) but quickly reversed. The MA is since moved lower of course - making it an easier hurdle, but it is still a hurdle and the reversal ahead of that target (we are now trading back below the upper trend line) shows the markets apprehension. It is a tough pill to swallow when the price action does not follow through but that is trading.
For the GBPUSD, the break above the 100 hour MA (blue line in the chart below), but stalled at the high price at yesterday's trading 1.4479, and has moved back lower. In fact, the price is currently trading back below the 100 hour MA at 1.4454 (100 hour MA is at 1.4456).
The price action shows the apprehension inherent in the market at the moment. There is no trust. The failed break likely takes traders out of the market which can increase the up and down volatility even more. Be patient. Don't overtrade.
