200 bar MA on 4-hour broken but price moves back above MA level
The EURUSD fell below its 200 bar moving average on the 4 hour chart today. However, the pair ran into a swing area at the 1.10923 to 1.1097 and stalled.
The subsequent price did move back above its MA level again. The break failed. In addition to the failure, note that the current 4 hour has a low just above that moving average level at 1.11022.
Is the EURUSD trying to bottom?
The failure and the reholding of the MA line gives buyers something to lean against. If the MA level can hold, we could see some corrective upside potential. If the moving average is broken and stay broken, I would expect the dip buyers the abandon ship and sell.
What would give buyers more confidence?
The price of the EURUSD did fall below a upward sloping trendline in trading yesterday, and has sellers leaning against that on retests since the break. Bearish.
That trend line cuts across at 1.11198 currently. A move above would give some breathing room to the dip buyers and signally another failed break technically.
A key battle is going on. The sellers tried to take more control on the break of the 200 bar moving average but failed. That could change bias if the hold support can hold, and the price extends above on the technical levels to the upside.
