The EURUSD is higher but not running


Can’t be running when the range for the day is only 27 pips

The EURUSD is higher.  Perhaps dragged higher by the GBPUSD a bit. 

Can't be running when the range for the day is only 27 pips

However, the price is off the high and you cannot really say that the price action is “running higher” when the range is only 27 pips from the low to the high. The 22 day average is about 47 pips (about 1 month of trading).  

Technically, the price rise today did stay above the Friday low, wandered higher and did move above a topside trend line on the hourly chart.  However the high price did stall ahead of the 38.2% retracement of the last trend move down from the Thursday high at 1.10439. The price also stalled below the 200 bar moving average on the 4 hour chart at 1.10467.  On Friday, the price tried to base against that 200 bar moving average only to crack below. The buyers turned to sellers on the break.  

So prices are higher, but the sellers remain more in control below the next technical levels defined by the 38.2% retracement and the 200 bar moving average on the 4 hour chart.  Even if the price does break above each of those levels, the falling 100 hour moving average at 1.0554 will be another target to get back above in order to tilt the bias more to the upside.  

ForexLive



Read more…