Failure on break below trend line is what buyers are thinking...
The EURUSD fell below trend line support earlier today and there was a scoot lower as a result. That is what you would expect on a break.
However, the break momentum could not be sustained and we have seen the price move back above that line. Moreover, the current bar held the old line. This shows support for the upside and indeed we are seeing more upside - albeit modest upside.
Will the failed break lead to more upside?
Well that will dependent on the buyers ability to take more control. Lets face it, they have not been winning since peaking February 11 at the 1.1376 level. The low today extended to 1.0858 (about 518 pips).
Looking at the 5-minute chart, the pair has moved above the 100 bar moving average currently at 1.08776. The 200 bar moving averages at 1.0900 is the next hurdle to get and stay above. Of course the 100 day moving average at 1.09484 will continue to be a potential thorn in the buyers side. Earlier today the price moved above that MA line only to fail. I have to think a test in the new trading day will find sellers.
Nevertheless, for some buyers if the price to remain above the hundred bar moving average at 1.08776 (blue line in the chart below), perhaps there is a shot for a test of that key level in the next 24-hours.
