Price above the 200 hour moving average, 100 hour moving average and 200 day moving average
Yesterday, at the start of the North American session, the price fell to a support area between 1.3725 and 1.37316. That area was home to recent lows on August 30 and September 1, and also other swing levels going back to August 17 (see red numbered circles). Sellers turned the buyers against the level and the price quickly snapped back higher.
Today, after and Asian session dip, the buyers gathered themselves and continued the run to the upside. The move higher took the price back above the 200 hour moving average currently at 1.37951, the 100 hour moving average at 1.38105, and the 200 day moving average at 1.38182 (see yellow area and green and blue lines). Those moving average lines are now support. They also tilted the bias back to the upside. Stay above is more bullish.
Further momentum to the upside will have traders looking toward the high from Tuesday’s trade at 1.3856. Above that and traders will look toward 1.38715 – 1.38774 swing area (see upper yellow area and green numbered circles), followed by the extreme high from last Friday’s trade at 1.38912.
The sands continue to shift from a more bullish, to more bearish, to more bullish bias almost on a daily basis. Today’s bias has shifted back to the upside from a technical perspective (after holding support yesterday). Traders need to go with the flow, put a finger in the air and survey the wind direction, and hope that the momentum continues – until it doesn’t (and the wind shifts the other way).