The EURUSD yesterday moved higher until it reached its 100 and 200-hour moving averages. Sellers leaned against that level and push the price down into the Asian session where support buyers came in against its 100 day moving average (blue line at 1.08074).The price then started a move to the upside breaking back above the 100 and 200 hour moving averages this time.
The PCE data extended that rally with the price reaching the next key target area between 1.08758 and 1.0887. Sellers leaned against that level and reversed the price back down again.
The most recent fall has taken the price back to that familiar 100/200 hour moving average area (blue and green converged lines). Both those moving averages are near 1.0840.
The price decline has stalled for now at that level. Risk-focused buyers are leaning this time as support. If the price can stay above those moving averages, a rotation to the upside would be anticipated.
Conversely, if those moving averages can be broken, look for more downside momentum with 1.0828 and the 100 day moving out of 1.0807 the next downside targets
This article was written by Greg Michalowski at www.forexlive.com.
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