The EURUSD broke above its 200-hour moving average for the 1st time since July 20 during Friday’s trade and extended upward toward the high from last Monday at 1.10449, and the high from Friday, July 28 at 1.10467. However, the price fell short of those targets stalling on Friday at 1.10412 and rotated back down toward its broken 200-hour moving average into the close.
In Asian-Pacific trading today, the high price in the 1st hour of trading reached 1.1016 but has since rotated back lower and is currently breaking below its 200-hour moving average once again at 1.10015.
The buyers had their shot above the 200-hour moving average, but they are now failing.
What next?
If the sellers are serious, we should now see a rotation back down toward the 100-hour moving average at 1.09678. Recall from last week, the price tested that moving average only to find willing sellers near that level on Wednesday and Monday. The previous Friday also stalled against that moving average level. So breaking above that level was significant. Returning back to it would be the logical target if the price can stay below the 200-hour moving average.
This article was written by Greg Michalowski at www.forexlive.com. Source