EURUSD bias tilts marginally in the sellers favor to start the trading week

The EURUSD is trading with a small negative bias in the short term to start the new trading week. The pair is trading below the 100/200 hour MAs today (at 1.09095 and 1.09203 respectively- blue and green lines in the chart below). Recall from Thursday and Friday’s trade, the price briefly moved above the 200-hour moving averages on corrective moves, but each was fairly quickly rejected. Getting back above the moving averages – and staying above – is needed to increase the bullish bias today and going forward

Keeping the buyers in play is that the declines into the early European session today found support buyers ahead of the 38.2% retracement at 1.08673. The low for the day reached 1.08695. The price is also back above what I’ve defined as the value area swing area between 1.0866 and 1.0896 (see red box in the chart below).

If the 100/200-hour moving averages are broken to the upside it would open the door for a test of the downward sloping trendline at 1.0930. The high price on Friday reached 1.09315. Getting above that area would have traders looking toward the high of the swing area between 1.0962 and 1.0973.

On the downside, breaking below the 38.2% retracement at 1.08673 would have traders targeting that area between 1.0842 and 1.08485.

This article was written by Greg Michalowski at Source