100/200 day MA and 50% retracement area found sellers
The EURUSD moved higher in early trading and in the process found sellers near the 200 day MA at 1.10798. The high did peek above that level to a high of 1.1086 - 7 pips above the key MA - but in this time, that is close enough. Traders look for upside momentum above the MA level. That did not happen. The price started to rotate back down.
The move lower has moved back below the 100 day MA at 1.10417 and to a session low of 1.0990. The next target comes in at 1.09799 which was the swing high from March 19. The broken 38.2% at 1.0962 and swing lows at 1.09507 are other targets on the downside now.
On the topside, the aforementioned 100 day moving average at 1.10417 is now resistance.
Failing to get above the cluster of resistance was key for the bias for the EURUSD. The subsequent fall has kept and reinstated the area as topside resistance and help to shift the bias more to the downside again. Having said that, the pair will have to get back below levels that it broke on the way higher. So there will be some fight. For now, the sellers are holding the strongest hand.
