February 3, 2023

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EURUSD bounces. EURGBP in play.

2 min read

Price of EURUSD moves away from 100 day MA today.

The EURUSD is trading lower but is bouncing off lows over the last few hours. The move higher has been helped by the rise in the EURGBP over the last few hours. 

Price of EURUSD moves away from 100 day MA today. 

The price action yesterday saw the EURUSD pair move back above its 100 day moving average and 200 hour moving average before backing off and settling between the two moving averages into the close (100 day MA at 1.20515 and 200 hour MA at 1.20715).   In the early Asian session, the price fell back below its 100 day moving average at 1.20515. The price trended lower, and continued the fall below the lows from yesterday at 1.20125.

The low price for the day came in at 1.19984 – just below the natural support at 1.2000 and above the swing area going back to April 14 between 1.1987 and 1.19943.

The price since the low,  has bounced higher and back above the swing area between 1.20125 and 1.20209.  The 100 day moving average above at 1.20515 remains a key resistance levels. SHorts will not like to see the price extend back above that key MA level.  On the downside, move back below the low from yesterday at 1.20125 (the price is currently trading at 1.2026), and the sellers can take another run to – and potentially through – the 1.2000 level.  

Helping the bounce over the last 4-5 hours has been a run higher in the EURGBP.  Looking at the hourly chart below, the run higher extended up to retest the near converged 100/200 hour MAs between 0.86874 and 0.86893. The pair has seen sellers against the level and currently trades at 0.8682, but would need a move back below swing lows from last week at 0.8674 area (and the 100 hour moving average of the four hour chart) to increase the bearish bias. A move above the 100/200 hour MA would likely lead to further upside momentum.


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