The EURUSD is range trading as US trader return from the 4th of July holiday.
The range is being defined by some fairly common technical levels with the :
- 200 hour MA at 1.09043 stalling the rise (green line in the chart below), and the
- 38.2% of the move up from the end of May low to the June high at 1.0867 stalling the fall.
So the technical levels are doing their job but at some point, there will be a break and run. However, until then, the technical levels are seeing ping-pong action between them for now at least.
Other levels of importance?
On the topside, a break above the 200-hour moving average would have traders targeting the swing eyes from Friday and Monday near 1.0933. Above that and a swing area between 1.09618 and 1.09759 would be targeted.
On the downside, breaking below the 38.2% retracement would have traders looking toward 1.08424 and 1.08485. Below that be aware that the 50% midpoint and the 100-day moving average are both near 1.0823. That should be strong support at least on the 1st test.
For now, buyers and sellers are battling it out between the 200-hour moving average and the 38.2% retracement.
This article was written by Greg Michalowski at www.forexlive.com. Source