200 hour MA at 1.12717 currently
The EURUSD ran higher with the USDs decline on Friday. That run higher in the EURUSD (lower USD) took the price above the 100 and 200 hour MAs (blue and green lines). The move above the 200 hour moving average was the first break since November 10. The subsequent run to the upside took the price into a swing area going back to mid November between 1.13215 and 1.13315, but backed off into the close.
In trading today, the price open below that swing area and wandered to the downside. After trying to hold near the 200 hour moving average, the price did dip below that level for about an hour or so before rotating back to the upside. The high price in the European session stalled low the 1.1300 natural resistance level (the high price reached 1.12943). The price is now back down retesting its 200 hour moving average 1.12717.
Traders will be watching the 200 hour moving average as a bias defining clue in the short term. Stay above and the buyers remain in control. Move below and the buyers may give up with a rotation back toward the 100 hour moving average at 1.12418 as the next major downside target.
The sellers took a shot back below the 200 hour moving average. That initial move failed. The next test is underway and will be a barometer as the US trading heats up.
