The EURUSD stayed mostly below the 100/200 hour MAs yesterday and closed below those converged technical levels near 1.1297 (at the close at least).
The price wandered lower in the Asian session today with the swing low from Friday's trade at 1.12644, and the swing low from last Wednesday's trade at 1.12659 helped to stall the fall. The low price today reached 1.12655 (see green numbered circle 9). Yesterday the low price dipped below each of those to 1.12595, but momentum slowed and the price rotated back to the upside.
After bottoming today near the support area (see green numbered circles), the price started to move back higher and was able to extend back above the 200 and 100 hour moving averages (green and blue lines currently at 1.12956 and 1.13007 respectively). That helped to tilt the bias more to the upside once again.
The subsequent momentum move higher above those moving averages sent the price back up to test the high price from Friday's trade at 1.13233. That was also home to the 61.8% retracement of the range since November 30 (see red numbered circles).
What now?
With resistance defined against recent highs and the 61.8% retracement near 1.13228. That is resistance and would need to be broken for a more positive/bullish bias.
On the downside buyers on the break of the moving averages would not want to see the price move back below those levels. They also are hanging around the 1.1300 level which is a natural support level. The 50% midpoint of the range since November 30 is also just above that at 1.13044. That level is so far holding on the dip from the high today.
So the ups and downs continue for this pair. Over the last three trading days, the range has been relatively modest with a low of 1.12595 in a high of 1.13233 (total range of about 64 pips). That's not a lot. Ultimately there will be a shove above or below the respective extremes. In between sits the moving averages which help define the intermediate bias as the traders ping-pong between the extremes.
