The EURUSD fell below the 200 hour MA in the Asian session – as well as a trend line and swing area in the 1.1002 to 1.108 area – and the break led to willing selling. After a corrective effort held resistance ahead of the 200 hour MA in the Asian session, a new leg lower ensued with the price bottoming at 1.0960.
However, the price snapped back higher and pushed back toward the 200 hour MA again. The last few hours in the North American session has seen the price move back above the MA. Sellers turned to buyers and the move was back to the upside on the failure.
What now?
The price is up retesting the 100 hour MA at 1.1040. A swing high from yesterday before the run lower, reached 1.10516. There has been some apprehension at the area and the price has backed off a bit. The pair trades at 1.1030 currently.
The old trend line cuts across near 1.10175 (and moving higher). Watch that level for potential support again (the price tried to stay below the trend line on the move back higher but eventually broke back above – see red circle 3). Move below and traders will be looking toward the 200 hour moving average again.