Yesterday the 100-day moving average held support near session lows during training yesterday, and the price rotated higher into the close.
That 100-day moving average comes in at 1.09255. The low price from last week came in at 1.09115. Getting below the 100-day moving average which has held support in June, July, and now August (give or take a few pips), is needed to increase the bearish bias on the longer-term daily chart.
Drilling to the shorter-term hourly chart, the price action over the last 3 trading days has been above and below its 100 and 200-hour moving averages.
The 100-hour moving average is at 1.09678. The 200-hour moving average is at 1.09802. Getting above both and staying above would then target 1.1010 which has formed a ceiling from Friday and again Monday. Above that and the 38.2% retracement of the move down from the July high is up at 1.10502, and would ultimately be needed to be broken to increase the bullish bias. If the price cannot get above the 38.2% retracement of a trend like move, the buyers are not winning.
So as we start the new trading day the close resistances against its 100 hour moving average 1.09678. The low support is at the 100 day moving average 1.09255. Traders will look for a break of either extreme with momentum.
This article was written by Greg Michalowski at www.forexlive.com. Source