Sellers could not stay in control eBody
Yesterday, the EURUSD trended lower and in the process fell below a key swing area between 1.20493 and 1.20578. The price also fell below the 50% midpoint of the move up from the February low to the February high at 1.20603.
“If the dip buyers are to start to break the trend move lower momentum, getting above …. the swing area from the hourly between 1.20493 and 1.20578 is required.”
Today, after trying to hold below the swing area in the Asian session, the pair start to find support buyers against the 61.8% retracement at 1.20346 and then cracked above the aforementioned swing level. The sellers turn to buyers and the price action has remained above that area. The bias turned.
The the price is now testing/breaking another swing area between 1.20802 and 1.20865. The the high price just reached 1.20895, but has backed off into the swing area again. If the buyers are to take more control getting above will be eyed.
Note however, there is some key resistance above with the 100 and 200 hour moving averages. Both are near converged at the 1.3100 area (also a natural resistance target). If the buyers can continue to push, I would expect sellers to lean against that area.
The sellers had their shot yesterday and into today to push lower below the 50% and the lower swing area. They could not keep the momentum going. Now with the price back higher, it is more in the meat of the up and down range of late. The converged MAs support that up and down price action and suggest the “market” is still not sure of the direction for the pair. The only thing we can do is go with the technical clues and lean at the extremes/levels.