In the kickstart video from earlier today, I spoke to the EURUSD moving below its 100 and 200-hour moving averages after the better-than-expected retail sales report. That fall shifted the bias back to the downside. There were targets that needed to get to and through including a swing area between 1.0525 and 1.05316.
You can watch the video by clicking here.
So what happened?
Sellers tried to keep the price below those moving average levels. Looking at the 5-minute chart you can see that clearly (see the video above for a clear look at that price action).
However, when the price moved above those moving averages, sellers turned to buyers and they pushed the price to new session highs.
What now?
Close support is at the broken 38.2% retracement of the range since September 12. That level comes at 1.05709. Alternatively, with the price back above the 100 and 200-hour moving averages, that area is also a risk/bias defining level. Staying above is more bullish. Moving below is more bearish.
This article was written by Greg Michalowski at www.forexlive.com. Source