The EURUSD moved higher in the early US session and tested its 200-hour moving average currently at 1.08342. Although the price ticked above the MA line on a few hourly bars, the momentum stalled.
The buyers turned to sellers, and the price has moved back to the 100-hour MA (blue line) at the 1.08056. The price is currently banging against the level, but so far finding support buyers.
The two moving averages are the bias-defining levels in the short term. Yesterday the price moved above the 100 hour moving average for the first time since September 30 and increased the bullish bias. .
Today, the 200 hour MA has been broken by a pip or two increasing the bullish bias, but momentum quickly faded. The price has not closed above the 200-hour MA since September 30. .
So the sellers fended off the upside try by the buyers. Can those sellers now keep the pressure on with a break back below the 100-hour MA?
A move below would have traders looking toward 1.0776. Below, that and the door opens to the low for the week at 1.0761, followed by a swing area between 1.0710 and 1.07346.
This article was written by Greg Michalowski at www.forexlive.com. Source