Narrow range.
Like the USDJPY, the EURUSD has been mired in a narrow range (31 pips with a 22 day average at 74 pips), and has seen the price action move up and down.
Looking at the hourly chart, at the end of trading on Friday, the pair closed at the lows and below its 200 bar MA on the 4-hour chart (at 1.0655 at the time) and 61.8% retracement at 1.06515. The price closed at 1.0650.
Today, the price open above those technical levels and there was a limited rally higher. When the range is 31 pips, there is not a lot of action.
Looking at the 5 minute chart below, the high stalled around the 200 bar MA on the 5-minute chart and traded sideways for 2-3 hours before moving back lower.
London traders are stalling the rallies against the 100 and 200 bar MAs at 1.0665 and 1.06683 respectively. Stay below is more bearish now.
ON the downside, that 200 bar MA on the 4-hour chart has been broken (at 1.06577 now). The break failed. We just retested that line and the MA level held....
The bias/control seems to be more in the sellers side below the 1.0665-68 MA levels, but it is not so clear cut. Sellers need to see a sustained break below that 200 bar MA on the 4-hour chart at 1.06577 to show they mean business. The first look below that level failed and we just tested and held. So there is a bit of a battle going on. Look for a break either way. There is room to roam with a 31 pip trading range.