EURUSD extends higher and looks toward 200 hour MA

The EURUSD has run to the upside in the US in session and in the process is looking to test its falling 200 hour moving average. That moving average comes in at 1.09702 (green line in the chart above). The price moved below that moving average on January 2 and has really not tested it since then. The fact that the moving average is moving to the downside makes the hurdle easier for the buyers.Nevertheless, it would take a move above to increase the bullish bias. So far, sellers are leaning against the MA level.

On Monday the price high reached up to 1.09784. That is near the 38.2% of the move down from the near end of December high at 1.09768. On a move above the 200-hour MA, the buyer would still need to get above – and stay above – the 38.2% to increase the bullish bias.

Above that, and the high price on employment Friday reached up to just short of the natural resistance at 1.1000.

On the downside, a moved below the 100-day moving average 1.09423 would increase the bearish bias. Admittedly, there was a dip below that moving average earlier in the US session today, but the 1.0929 level did stall the fall

This article was written by Greg Michalowski at www.forexlive.com. Source