100 hour MA holding support?
If you look at the last 5 days of trading for the EURUSD, the lowest low was at 1.08114, and the highest high reached 1.09041. That is less than 100 pips for the period (93 pips). Moreover, there have been three tests of the high (between 1.0896 and 1.0904 – see green numbered circles) and three tests of the lows (between 1.0811 and 1.0816 – see red numbered circles). Yesterday, the low extreme was tested. On Monday, the high extreme was tested.
Today we are trading higher on the day but in the meat of the 5 day range. However, the buyers are trying to make more of a play with support buyers seemingly leaning against the 100 hour MA and the upward sloping trend line from yesterday. That support comes in at 1.08573 currently (and moving higher). Stay above and the buyers are more in control. Move below and that idea is flawed.
On the topside there is a flattish trend line at 1.0889, but the better targets are the 200 hour MA at 1.08945 and the swing high area from 1.08961 to 1.09041 (in between is the 50% retracement).
With a range for the last 5 days at 93 pips, traders are searching for the next shove. The extreme levels are in. We sit in the meat of the range with a positive bias today above the 100 hour MA. The levels are defined. Will the market keep the bullish tone and give the shove needed? Time will tell
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