The EURUSD moved higher into the late US morning and in the process approached the falling 100-hour moving average (blue line), and the 38.2% retracement of the move down from the September 20 high (at 1.05823). See earlier video:
The pair moved up to test that 100-hour moving average, could not extend above, and buyers turned back to sellers (the MA was tested twice on two separate bars). The inability to extend without moving average gave the sellers the go-ahead to push lower.
The price has now pushed the price back below 1.05541 which was a mini floor during trading yesterday (see red numbered circles on the chart above). The price currently trades at 1.0551.
Buyers owned the corrective upside today, but were stopped at the 100 hour moving average. Now the buyers and sellers are more balanced at least in the short term.
In the medium term, the buyers have more to prove. Getting and staying above the 100 hour moving average is required. Getting and staying above the 38.2% retracement is required. Getting and staying above the 1.0606 – 1.0616 area is required. All those need for the buyers to exert more control.
This article was written by Greg Michalowski at www.forexlive.com. Source