The EURUSD moved sharply higher after the US jobs report, and in the process extended above the 50% midpoint of the move down from the March high and also the 200-day moving average (at 1.0797 currently). The price did extend above those levels and the high of a swing area up to 1.08036. but failed.
The subsequent fall took the prize back down to test its 200-bar moving average on a 4-hour chart. That level comes in at 1.07528. The 38.2% retracement of the move down from the March high comes in at 1.07458. That area is now support.
So with the ups and downs in the price of the EURUSD today, what we have defined is the topside resistance between 1.0790 and 1.08036, and the downside support between 1.07458 and 1.07528.
I would expect buyers to lean against the lower support level on a test with stops below the level. And until broken on the topside, I would expect sellers between 1.0790 and 1.08036.
This article was written by Greg Michalowski at www.forexlive.com. Source