The EURUSD had a lid on the upside in the Asian/early European session against its 200-hour moving average (green line on the chart below), and then was pressured lower in the European session helped by weaker German IFO data. However, the fall has seen a rebound in the early US session, the price moved back above 1.0900, and the rise has now seen the price move above the 200-hour MA at 1.09145.
The price is not “running” higher per se, but the bias has tilted more to the upside above that 200-hour MA level with the 100-hour MA at 1.0931 as the next upside target (for buyers/bulls). The best-case scenario for the buyers is to stay above 200-hour MA in the short term, but traders – who are bullish – may also look down to 1.08955 for support.
The EURUSD’s high-to-low range is still only 33 pips today (vs a 22-day average of 72 pips – about a month of trading). That is not a lot of price action. There is room to roam.
The buyers are making a play in early US trading. Can they keep the momentum going and stretch toward the 100-hour MA and extend the range in the process?
This article was written by Greg Michalowski at www.forexlive.com. Source