100 hour moving average of 1.22196 being tested
The EURUSD reached a peak yesterday at 1.22657. Today, the pair moved up to a high of 1.22605 but could not climb the mountain to the high from yesterday. Sellers leaned.
The price started to trade back below the high from last week at 1.22448 and the high going back to February 25 (not shown) at 1.22424. Sellers started to take more control (and buyers exited on the failure to move to – and through – the high).
The price is now down testing (and going through as I type) the 100 hour moving average at 1.22196. Going back to Monday’s trade, the pair based near that moving average level before moving up and trading higher yesterday. He remains a key barometer for both buyers and sellers.
With the price now trading below the moving average, the 50% midpoint of the range since Friday comes in at 1.22129 and is the next target. Get below that and further downside momentum could see the pair target the 1.2200 level. The rising 200 hour moving average it is just below that level I.21970 (see green line in the chart above).
The 100 hour moving average is a key level for both buyers and sellers. With the moving average being broken, sellers will now use the 38.2% retracement as the close risk and 1.22321 (the London morning session low) as another risk defining level. Stay below and the sellers remaining control intraday.
Sellers are making a play. They are taking their shot….