Extends range as NY traders enter
The EURUSD moved to new session highs as NA traders entered and in the process have traded above the 100 hour MA (blue line in the chart below) at 1.04194 level.
The pair has been consolidating over the last 4 trading days. Yesterday, the lows for the year were taken out (new lows going back to Jan 2003) but found support against a lower channel trend line and rebounded. The high over the last 4 days peaked at 1.0479.
Trading today has been up and down. The high to low trading range is a light 51 pips. It is the Christmas/holiday week of course and getting toward year end. There is little on the calendar. So the price action can be filled with flow pushes (up or down).
Nevertheless, the price has moved above that 100 hour MA for the time being. That is a positive development for buyers.
Should the buyers exert more influence, the next key technical level is the 1.0462 level which if you recall was the low price from March 13, 2015. A broken trend line on the daily chart slashes across near that level as well.
In days like today, if there is a move/break it is about keeping the momentum going. You can get a break and because it might be just a random flow, it can come and then go. Traders, looking for action, want to see action on a break. If not, they scratch or exit with a small loss, and go back to waiting.
Move away from that 100 hour MA.