Stay above, keeps the short term buyers in play
The EURUSD traders are building a level of support in the 1.1920 to 1.1925 area. The area has seen a number of swing lows and swing highs that defined ceilings and floors from June 17. Yesterday admittedly, the price did dipped below the area on a quick retest of its 100 hour moving average, but found buyers against that level and push back higher. Today, the low for the day did reach 1.1917, but there just was not a lot of interest to go further. Stay above the area (down to 1.1917) keeps the short-term bias in the favor of the buyers.
Having said that, there is work to be done if the buyers are to take more control. The pair is trying to get above the 1.1952 area (see green numbered circles). The price moved above that area yesterday and the way to a somewhat random high of 1.1969. The price just moved to a high of 1.1955, and backed off. Traders want to see more momentum above that area.
Further higher, the real work for the buyers would come at the cluster of resistance defined by the:
- 200 hour moving average at 1.19807, the
- 38.2% retracement of the move down from the June night high at 1.19885, and the
- 200 day moving average at 1.19942
That cluster is where the rubber meets the road for the buyers and sellers (honestly). Failure to move above that area, and the correction off the June low (lowest level since April 6th) is just a modest correction to overhead technical resistance. Conversely a move above would open the door for a run toward the 50% and 100 day moving average both at 1.20322.
So buyers are making a play with the floor at 1.1917 to 1.1925. However getting above 1.1952 and the cluster of resistance between 1.19807 to 1.19942 remain as key target on the topside.