On Wednesday, the price of the EURUSD in the US a session moved sharply higher, but stalled near the 200-day moving average at 1.08314. Traders consolidated around the level until the new trading they began 24-hours ago.
Buyers reentered the market and pushed the EURUSD price higher in the Asian/European session. The buying took the price
- Above the 50% midpoint of the trading range for the month of March at 1.08522,
- Above a swing area at 1.08656, and
- Ultimately also above the 100-day moving average at 1.08717.
However, momentum could not be sustained and the price of the EURUSD started to rotate back to the downside.
In the US afternoon session, momentum increased to the downside as stock market unraveled, Minneapolis Fed Pres. Kashkari spoke to the idea that there may not be any cuts in 2024, and technicals started to reverse their bullish bias.
That selling continued until the price reached it to 100-day moving average at 1.08314 where like 24-hours ago, the price stalled.
So the new day starts where the price was 24 hours ago.
When next?
I would expect the 200-day moving average to try to hold support. If it can, the 50% midpoint at 1.08522 should provide initial resistance.
Conversely if the 200-day moving average is broken, the technical bias is more to the downside with support at the broken 38.2 retracement at 1.08219, and the rising 200-hour moving out at 1.0803.
Watch the video for all the technical details.
This article was written by Greg Michalowski at www.forexlive.com. Source