At the start of the US trading day, the price was trading near the 200-day MA at 1.08162 (green step line on the chart above). The price action moved through that level in the morning session, and in doing so, moved toward the next in what was a cluster of technical targets.
The second target came in at the 50% retracement of the move up from the June 26 low at 1.0806. That level was also broken with the price moving to a low of 1.0802.
However, what could not be reached – or breached – was the third target at the 100-day MA at 1.07958. The price could not reach that level, and the price bounced higher.
Since then, the 200-day MA has been rebroken at 1.08162.
The high has reached up to 1.0825 so far which is near the low from last week. Getting above that level would give the dip buyers some added confidence with a push toward 1.08394 the next target followed by the 100 hour MA at 1.08469 (and moving lower).
Conversely, if the price can remain below that low from last week, the sellers remain in play, but buyers and sellers will be battling it out with the 200-day MA the level to get below, and the low from last week at 1.0825 as the level to get above..
This article was written by Greg Michalowski at www.forexlive.com.
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