EURUSD bounces off the 50% of the move up from October low

The EURUSD has traded lower today and in the process, the price moved below its 200 day MA at 1.0842 and into a swing area between 1.08030 and 1.0824 (see yellow area and red numbered circles on the 4- hour chart above).

Initially, the pair found buyers against the low of that swing area at 1.0803, but eventually did breach it only to find dip buyers against the 50% midpoint (of the move up from the October low to the December high). That level comes in at 1.07936. The low price for the day reached 1.0795 just above that midpoint level.

The price has since bounced higher and has traded back into the swing area with a high price of 1.08153. Going forward, staying above the 50% is a key barometer for both buyers and sellers.

Taking a closer look at the 5-minute chart, the high corrective price off of the lows has stalled near the 100 bar MA on that chart (blue line on the chart below). Move above that level (blue line on the chart below), and traders will look toward the 200 bar MA on the same chart at 1.0828 (and moving lower). The 38.2 of the move down from the high on Friday is at 1.08296 and would represent another target to get to and through on more momentum.

This article was written by Greg Michalowski at Source