The EURUSD buyers tried to tilt the technical bias to the upside today with a move above its 200-hour moving average at 1.0580 and it’s 100-hour moving average 1.0589. The price also moved above the 50% midpoint of the move up from the October 13 low at 1.0594.
However, momentum above the levels could not be sustained. The high price reached 1.0596 and rotated back to the downside. The current price is trading at 1.0561.
Going into the new trading week, those 2 moving averages (and 50% retracement), will be the barometer for more bullish and bearish. Moving above those levels, would be more bullish. Staying below gives the sellers the control nod.
On the downside, a swing area between 1.0522 – 1.0531 is the next target followed by the swing area between 1.0483 and 1.0500. Will below that it opens the door for a run toward the October low near 1.0448.
Moving above the 50% 1.0594 would open the door toward key resistance near 1.0610 (swing area between 1.0608 and 1.0616) above that and traders would target 1.0635 area.
This article was written by Greg Michalowski at www.forexlive.com. Source