100 day MA above and 100/200 hour MAs below
The EURUSD remains confined by moving average levels. Traders are leaning against them to defined and limited the risk.
Looking at the hourly chart, since breaking below the 100 day moving average yesterday, traders started to use that moving average as a ceiling. On the fall to the low yesterday, the 100 hour moving average became a support level. The rebound back higher once again use the 100 day moving average is a stopping point (see red numbered circles 2).
Today the price has rotated back to the downside, and has found support buyers against its 100 hour moving average (see blue numbered circles 2). Also near that level is the 50% retracement of the move up from last week's low and an upward sloping trendline as well. A move below that cluster of support would still have the 200 hour moving average at 1.10367 to get to - and through.
The markets remain influenced by headlines. That often leads to technical levels to provide risk defining and bias defining clues. The 100 hour moving average at 100 day moving average are showing that they are being used by traders to defined risk and defined the bias. So far, the levels have been able to keep both moves higher and lower contained. At some point, a extreme will be broken and traders will look for more momentum in the direction of the break. Be aware.
