EURUSD tests key moving averages, but sellers stall the rally

The EURUSD opened the North American session near its 100-day moving average and moved higher. The initial run to the upside stalled just ahead of the 1.0800 level which led to a rotation back down to retest its key 100-day moving average AND 50% retracement near 1.0766. Support buyers came in against that level and pushed the price higher.

The run to the upside ran into the falling 100-hour moving average currently at 1.08144, and found willing sellers. The price is currently trading at 1.0800.

As outlined in the morning video, getting above the 100-hour moving average (at 1.08144), 200-day moving average at 1.0822 and then the the broken 38.2% retracement of the move-up from the November 1 low at 1.08252 would increase the bullish bias. That could not be done so far today (the 100 hour MA stalled the rally). However, with the US jobs report tomorrow, that area will be eyed going forward. A move above is required to open the upside for buyers/bulls. .

Conversely, staying below that area (sellers against it) will have traders focused on support near the 50% midpoint at 1.0766 along with the 100-day moving average at the same level. Like the cluster above, getting and staying below that level, would increase the bearish bias.

Note that the sellers did have their shot below the lower technical support level today at 1.0766, but failed.

This article was written by Greg Michalowski at www.forexlive.com. Source