The EURUSD is trading the key technical levels to start the trading week.
The initial move in the early European session saw the price moved down to test its 100 hour moving average (blue line on the hourly chart above). Buyers leaned against the level and pushed the price back higher. Recall, the 100 hour MA also stalled the fall on Friday.
The run to the upside subsequently stalled within a key swing area between 1.0448 and 1.0461. Within that area was also the 38.2% retracement of the December trading range at 1.04523. The high price reached 1.04577 and has since rotated back to the downside. The current price trades at 1.0438.
- Support held against the moving average.
- Resistance held against the swing area.
Going forward, moving outside of that range should tilt the technical bias in favor of the break.
- On the top side, the 50% midpoint of the December range comes in at 1.04859. That would be the next upside target.
- On the downside, a break of the 100 hour moving average, would open the door for a retest of the low prices from last Monday and Tuesday near 1.0383.
This article was written by Greg Michalowski at www.forexlive.com.
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