The ups and downs continue
The EURUSD is trading a new session highs as stocks open higher in the US. The pair continues its up and down trading pattern which has dominated this week. The range for the week is an ultra low 127 pips. That makes it the 3rd lowest going back to September 2014. ZZZZZZ but with lots of up and down volatility.
The price action today had two battles with the rising 200 hour MA (green line in the chart above). As the price has consolidated this week, the 200 hour MA ( green line in the chart above) has caught up with the price. That tends to force a decision - go higher or break below and go back lower.
The market tried to dip below twice but did not get far. Failures. Shorts you had your opportunity.
The recent move back above the sideways 100 hour MA (which has seen the price move above and below all week - which happens in non trending), has led to more buying. Does it mean we go even higher? Get and stay above, becomes the mantra.
If the story line were to play out today for me, it would go like this
"The 200 hour MA caught up to the price today. The market had the opportunity to move lower on two separate breaks. It could not. The move back above the 100 hour MA attracted more buying and the price explored the next target at the 1.1411 area. This area has seen the price stall against it on a few occasions going back to March 31. A move above and staying above is needed for the bulls to take the price even higher...".
That is the technical story. Can the 100 hour MA hold is how that story line needs to play out. If so, the 1.1411 may well be revisited and who knows, maybe the market can make a run at the weeks highs? Key test
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.