The EURUSD has traded in an up-and-down trading range today. On the downside, the price continues to toy with its 100-day moving average. That level currently comes in at 1.09164. The low price today did extend below that level to a low of 1.0912, but momentum could not be sustained in the price rebounded back higher.
The price move back higher took the price above an old swing area between 1.09329 and 1.09421, but momentum stalled at 1.0955. The price is currently trading back down toward the 100-day moving average at 1.0924.
The low to high trading range of 43 pips is narrow (the average is around 78 pips). Traders are looking for the next shove.
Technically,
- Moving back below the 100-day moving average at 1.0916 (and staying below) would target 1.0886 – 1.0899 swing area. Move below opens the downside door even more.
- Moving back above 1.0942 and staying above could see traders start to push toward its falling 100 hour moving average of 1.0984. The last 3 tests of that moving average found willing sellers near it.
Sellers are more in control but the 100-day moving average is providing formidable support as well. Be aware.
This article was written by Greg Michalowski at www.forexlive.com. Source