EURUSD trades above and below 100 hour MApetar skakalov
100 hour MA catches up to the price in EURUSD trading today
The EURUSD is trading above and below its 100 hour moving average at 1.16657 over the last few hours of trading. The falling moving average finally caught up to the price.
Recall from last Monday (see chart above), the pair moved below both its 100 and 200 hour moving averages (blue and green lines in chart near highs on Sept 21) up near 1.1839 area. The pair trended lower and moved to a low for the week on Friday of 1.16117 (223 points lower).
Today, the price could not extend below the low from last week (low today reached 1.16142) and the price ultimately moved higher in the London session. The price extended above the 1.16505 level. That level corresponded with lows from September 23 and early September 24. On Friday, the price stalled against that level on its way back down before breaking through. It is not the greatest of technical levels but there was some reaction to it (see red numbered circles) and it is midway between 1.1600 and 1.1700.
On the topside, the next target area above its 100 hour moving average comes between 1.16846 and 1.16917 (see green numbered circles). A break above that level opens up the market toward the 1.17109 where the 38.2% of the move down from the September 21 high is found.
The buyers are making a corrective move play today, but they have will work to do to prove that they could take more control. Getting and staying above the 100 hour moving average is a step number 1. Working toward the 38.2% retracement would be the next major step. Until then, the buyers are winning some battles (above 1.1650) but are still trying to recover a little more from the trend move lower last week.
PS. Looking at the daily chart the 1.1695 to 1.17103 is a old floor that now becomes a ceiling. Getting above that area is important for the buyers this week and going forward.
Source: Technical analysis