Keeps a lid on the pair.
Yesterday, the EURUSD moved above its 100 hour and 100 day MA and 50% of the years trading range at the 1.0623 (from daily chart below). The price should have gone higher. It did by a whole 6 pips. Whoop di do.
Today, the market allowed for a break of the 100 hour MA for a few hours but the 100 day MA and that 50% midpoint....nope. The high reached reached 1.0623 and moved back lower. The ceiling is stronger. The sellers remain in control
Now, having said that the pair is not exactly racing lower. The range is a whole 29 pips. However, the roadmap is mapped out with a break of the 1.0590 level the first target to get to and through. That may or may not happen. Let's face it, not much is going on, but that would give sellers more ammunition for taking the price lower technically at least.
Below that the lows from yesterday at 1.0578 and the double bottom at 1.0569 become the next targets to focus energies. Below that the 1.05558 is the 61.8% of the 2017 trading range for the EURUSD.
What might be a level above that might be eyed for bearish clues if there is a little correction? The 100 hour MA at 1.06098. Yes the price moved above it today, but if you look at the 5-minute chart below and the overlayed 100 hour MA, the market wanted to stay above it on the break higher, but traders gave up on the dip back below. So support became resistance. It should be a lid if they believe it.
Everything is compressed but that is the story the pictures are telling me this quiet morning.