50% and trend line support stalls the fall
The EURUSD is bouncing in early NY trading. The pair fell to the 50% retracement of the move up from the Oct 1 low. at the 1.13144. The low for the day has come in at 1.13082 so far. Trend line support also played a role in finding support buyers (see chart below). This is a tough area with the cluster of support all centered in a confined area. I am not surprised to see the buyers at the area.
Earlier today, the pair fell below the 200 hour MA (green line in the chart above), failed but then tumbled back below for a 2nd time. EURGBP fall below a support floor at the 0.7335 area helped keep the pressure on. That fall and move away from the MA moved the sellers in control, but it might be safe to say that with support below holding (bullish) but the price break below the 200 hour MA (bearish), there is a battle going on.
Anything in between to give bias clues for the day? With the price rebounding now, the pair is trading just above the 38.2% of the days trading range at 1.13351. The 50% of the same range is at 1.13434. If this area can hold close resistance, it would keep more of a bearish bias for the pair and we could take another run at the cluster of support below. The 1.1343 level was also the low price on Tuesday. The pair closed near this level on Friday.
