The EURUSD is stretching higher and it has now broken back above the November 26 swing low at 1.0442 and is testing its falling 100-hour moving average at 1.0443 (blue line on the chart above).
Just above that is a swing area between 1.0448 and 1.0461 and the falling 200-hour moving average at 1.04719 (green line on the chart above).
Recall that the 200 hour moving average was a strong resistance area going back to December 10. Just prior to moving lower on Decemeber 17, the price tried to extend above the 200 hour MA (see green number circle 7) but failed quickly. The price traded higher and lower on Tuesday and Wednesday before heading sharply lower on the FOMC day.
Now after bottoming near the November low, the price is stretching higher.
Also in play is the “Red Box” that confined most of the trading between 1.0448 to 1.06097.
The question is “WIll the sellers lean against old support RIGHT HERE?” or “WIll the buyers take back control after the failed break lower this week and testing the November low?” .
That is the decision right here. Be aware.
This article was written by Greg Michalowski at www.forexlive.com.
Source link
