Spikes away from 100 and 200 hour MA
The EURUSD has traded higher in the face of the potential Catalan independence announcement.
Catalan president, Carles Puigdemont, is facing pressure to drop plans to break from Spain ahead of a key address to the regional parliament. Spain PM Rajoy has said he would use all constitutional authority to block any attempt to break away. Puigdemont is scheduled to speak at 1600 GMT.
Technically for the EURUSD, the pair waffled up and down yesterday in a narrow trading range. Toward the end of the day, however, there was a move higher on more hawkish comments from ECB Lautenschläger. However, the pair's momentum higher was stalled near the 200 hour MA (green line in the chart above).
Today, the pair moved higher in the Asian session. The pair based against the 100 hour MA (blue line), could not really trade below that support level and buyers took the clue and started to bid the pair higher against the risk defining level.
The move took the price to the natural resistance at the 1.1800 and then the 38.2% of the move down from the September 20th high to the October 6th low at 1.18076. That is where the pair stalled.
Drilling to the 5 minute chart, the fall off the 38.2% on the hourly chart, also fell to the 38.2% of the move up from the October 9th low. That comes in at 1.1773. That retracement and the rising 100 and 200 MAs are risk levels for longs. A break below would also signal, more bearishness on a break. So eye the level. Look for a break to solicit more selling.
