Seller in the EURUSD – helped by lower inflation numbers in Germany and UK – took the price of the EURUSD back below a swing area between 1.0958 to 1.0964 and the rising 100-hour MA (blue line currently at 1.0946). The low reached down to 1.0933, but there has been a snapback push back above the 100-hour MA and back to the aforementioned swing area (up to 1.0964).
So far, the swing area is stalling the rally. If sellers can stall the rally in this area, they stand a chance to take back some control on a move back below the 100-hour MA. If that can be done, traders would instinctively want to see the low for the day breached with the 1.0900 level (38.2% of the December range) the next major target.
Conversely, moves back above 1.0964 and the sellers become frustrated and likely push the price back toward the high for the day.
Key short-term barometer being tested between 1.0958 to 1.0964. Important area for buyers and sellers in the short term.
This article was written by Greg Michalowski at www.forexlive.com. Source