EURUSD rises to touch the 200 hourly MA, then pushes lower.

EURUSD remains below the 200 hourly MA on the upward correction

With the price action today in the EURUSD, you must be wondering if we are just preparing to connect to the IPC next. In other words, are we stuck in the 15-day trading range until this data potentially breaks us out of the upside and downside trading range?

Price action today saw the pair decline sharply BUT find support at a higher high for the third consecutive low (since July 27th, July 28th low, August 3rd and again today today were each higher). This is somewhat bullish, or at least there is buying support on the dips.

However, the corrective move up today – after the drop – stopped right at the 200 hourly MA which is the lowest of the 100/200 hourly combo. The 200-hour MA comes in at 1.01933. The 100-hour MA comes in at 1.02047. BTW yesterday and today’s high stalled in a lower swing zone near 1.0254 to 1.0257.

The scenario remains… ie it would now be necessary to cross above the MAs to give more control to the buyers. Stay below and the sellers win, however, they still have work to do. Not only do recent lows need to be broken, but price needs to break out of the box that has confined the pair for 15 days now and stay below if the sellers are to stay in control.

If that doesn’t happen and price breaks back above the yellow zone defined by the 10/200 hourly MA, buyers will need to respond to the work they need to do to break above the upper extremes and break out of the box for the Upside down.

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