200 day MA and trend line at 1.1053
The EURUSD slipped above the 200 day moving average like a hot knife through butter earlier this morning. The price extended to 1.1079 before quickly retracing back lower to a corrective low of 1.1033.
The pair has since taken a 2nd look above the key MA (and the trend line that was also broken at the same level) at 1.1053. A 2nd look at the days highs could not quite get there and the price has come back down..again.
Te pair is currently trading just below the 1.1053 level again at 1.1047.
Perhaps the bite has been more than the market can chew. The range for the day which was below 40 pips when NY traders entered is now about 180 pips. That is the largest trading range since the ECB meeting on December 3rd. Supporting the cause and the move, is that the market was looking for a break. The break came and the EURUSD position has been short. That supports a move and a squeeze. So traders SHOULD look to keep a floor underneath. The trouble is the volatility at the higher levels and around the key technical area.
