EURUSD 100 hour moving average currently at 1.21081
The EURUSD on Wednesday, moved up and extended above its 200 hour moving average (green line). The pair traded above the moving average on 3 separate hourly bars and closed above on one of the three. It was the 1st venture above the 200 hour moving average since January 8.
However, momentum could not be sustained. In fact, the price could not reach the 38.2% retracement of the move down from the January 6 high at 1.21658 (the high price for the day reach 1.21577). As a result, buyers turned to sellers and the price fell to session lows at the start of the NY session.
That New York session low did fine support buyers against the underside of the broken trend line (see red numbered circles) line and rebounded higher.
The corrective move higher retested the 100 hour moving average at 1.21081 (blue line in the chart above). Although the price traded above that moving average line on 4 or so hourly bars, the buyers could not muster much upside momentum. The last 4 hourly bars traded below the MA line giving the sellers more control.
Admittedly, the sellers didn't exactly push the price much lower (the New York afternoon low came in at 1.2098). Nevertheless, it will now take a move above the 100 hour moving average (and staying above), to give buyers more control. If there is more buying, a revisit of the 200 hour moving average at 1.21396 would be the new day target.
On the downside, the 1.20806 level is a support target, followed by the underside of the broken trend line currently at 1.20628. The low from Monday's trade reached 1.20529 and would be another down side target.
