The pair trades between the 100 and 200 hour MA. Look for dip buyers ag. 200 and 50% retracement
Yesterday the EURUSD showed signs of a momentum shift (see post from yesterday "EURUSD chops around at higher levels. Momentum higher slows. Will it rollover?."
- The pair could not extend to the topside channel trend line for the first time in three days,
- The price action was choppy, so buyers and sellers were fighting it out.
- Later in the day, a lower channel trend line was broken after the FOMC meeting minutes.
Of course nothing comes easy these days. So into the Asian session the price retraced the FOMC fall, but it did stall under the broken trend line (see chart above), before resuming the run lower. The "rollover" was back on.
The price has now dipped below the rising 100 hour MA at 1.2327 and moves toward the 200 hour MA and 50% retracement at the 1.2303-046 area. When the 200 and 50% are converged near each other and the price tests, it often stalls the fall. So look for buyers here with stops on a momentum move below.
Nevertheless, I would also expect the 100 hour MA above to be an upside resistance level as the market sorts out the next move.
Testing the key level as I type.
