Above the 200 hour MA/Below the 100 hour MA
The EURUSD has continued to recover more of the decline in trading today and now trades higher on the day (above 1.0694).
The pair has also moved back into the "wide line in the sand" that defines my bullish and bearish bias for this week. That "line" comes between the 200 and 100 hour MA at 1.07017 to 1.07128.. In between those MA is the 1.0706 level which is the 38.2% of the move down from the November 2016 high.
The pair has had a wild time of it today. The initial move was higher, then sharply lower (toward the 50% at 1.06139) and now back higher.
The sellers had there shot when they took the price below the lows from last week at 1.0657, below the 100 bar MA on the 4-hour and the 38.2% of the move up from the Jan 11 low (at 1.06518). When the price moved back above that 1.06518 level, the sellers turned to buyers and we have seen steady buying.
However, now comes the next test. Will the sellers lean against the key "line in the sand"? That is key test now, but what we know is risk is defined and limited against the area. We are seeing a slowing of the move higher in the area.