The EURUSD yesterday had an up-and-down move yesterday. On the way down, the price moved back below the 200 bar MA on the 4-hour chart at 1.08367, the 200-day MA at 1.08246, but found support buyers at the 100-day MA at 1.08028. Buyers saved the day by leaning against the 100-day MA.
Going forward, the MA will be the close risk/bias defining level for the pair going into the new trading day. As long as the price can remain above that 100-day moving average I would tilt the bias more in favor of the buyers.
Having said that there is work to do. The 200-day moving average comes in at 1.08246 and needs to be broken along with its 200-bar moving average on the 4-hour chart at 1.08367. Of note is that yesterday the price did move above those moving averages but failed.
So it’s not “green grass and high tides forever” for the buyers, but holding the 100-day moving average was a key save and The buyers in play and the bias tilted more in that favor.
This article was written by Greg Michalowski at www.forexlive.com. Source