EURUSD chops back higher after buyers and sellers take their shots w/ neither hitting.

The EURUSD buyers took the pair’s price above its 100-hour moving average (blue line in the chart below) earlier today, but ran into resistance near a swing area between 1.0911 and 1.09179. When the price moved back below the 100-hour moving average 1.08876, that turned the bias back in favor of the sellers. However, since then there has been yet another move back above the 100-hour moving average and the price currently trades at 1.0900.

So traders can argue that the buyers had shot ABOVE the 100-hour moving average earlier today. They can also argue that the sellers had their shot on the break back BELOW the 100-hour moving average, and now the buyers are taking back control on the move back ABOVE the 100-hour moving average once again.

It’s not a great day for breaks and run traders.

Nevertheless, traders that are true to their tools, in the short term at least, would have to put buyers back in control. with more “work” to do.

That “work” now includes:

  • Getting back above the swing area between 1.0911 and 1.09179
  • Getting back above the falling 200 hour moving average 1.09237
  • Getting back above the 38.2% retracement of the move down from the August 10 high at 1.09276
  • Getting above the 100-day moving average at 1.09309
  • Getting above a swing area between 1.09329 and 1.09421

That would be the progression for buyers if they are to start to take back more control.

Of course on the downside, falling back below the 100-hour moving average would be a no-no and frustrate the “break” traders once again. That’s the risk of trading though.

This article was written by Greg Michalowski at Source