100 hour moving average being approached on the downside in the EURUSD
The EURUSD on Friday moved sharply higher after the weaker than expected US employment report and overall dollar selling. On the way higher, the pair moved back above the 1.2027 to 1.2010 key swing area. Recall those levels were swing highs going back to 2020 before breaking higher on December 1. They also were swing areas in the month of February, before breaking lower on Wednesday’s trade last week (see green numbered circles). The pair also broke above the 100 hour moving average for the 1st time since February 1.
The move higher on Friday did stall just ahead of the 50% retracement and a another swing area between 1.2050 and 1.20558 (see red numbered circles).
Today, in the early Asian session, the price tried to extend above the aforementioned 50% and swing area, but could not muster momentum. Sellers start to take a little more control and push the price to the downside.
The price is moving back toward the 100 hour moving average currently at 1.20137. A move back below that level and back below the 1.2027 to 1.2010 area would increase the intraday bearish bias today, and have traders refocused on the lows from last Friday, where the traders tested its 100 day moving average at 1.19606 currently.
For now, although the price is lower, remaining above the 100 hour moving average gives buyers some small leverage. However, there is a battle between buyers and sellers as sellers did not like the idea of going above the 50% and buyers will likely not like going below the 100 hour MA either. Look for some support buying against the 100 hour moving average, with close stops on more selling below the level.