The EURUSD has had an up and down today, while the stock market gyrates. The moves lower were able to get below the 38.2% of the move up from the June low to the July high. That level comes in at 1.08394. The price also fell below that retracement level yesterday, but snapped back to the upside.
So buyers and sellers were unsure around the retracement level, but the sellers had their shot(s). They could not keep the momentum going. .
The last move has taken the price higher, and to a new session high for the day. That move ran into the falling 100-hour moving average at 1.08645, and also the high price from yesterday’s trade at 1.08658. The high price reached 1.0864.
Looking forward, getting above those levels is needed to increase the bullish bias. Even so traders would also need to get above 1.0872. That level was a floor in the short term (see red numbered circles).
Yes, the sellers had their shot and the buyers have pushed higher because of the fails. However, there is work to do to increase the bullish bias in the pair.
This article was written by Greg Michalowski at www.forexlive.com.
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