Move above 100/200 hour MAs fail
The EURUSD has been in a up and down trading range today. The price has moved back down toward the closing level from yesterday at 1.1822. The current price is trading at 1.1826.
The move to the upside earlier today saw the price extend above both the 100 and 200 hour moving averages (blue and green lines). The high price reached 1.18506. That was above the swing high from August 31 at 1.1844, but below the swing high from September 1 at 1.18568. The failure to extend momentum above the moving averages has given the sellers the go-ahead to push the price lower.
The next target on the downside would be the 38.2% retracement of the move up from the August 20 low. Below that and a swing low area between 1.1800 and 1.18044 would be eyed. That area stalled the fall both on Wednesday and Thursday. As a result, getting below it would open the door for further downside with the 50% midpoint at 1.17859 as the next downside target to get to and through if the sellers are to increase their bearish bias.
Moving back above the 100 and 200 hour moving averages would negate the short term negative/bearish bias now.