Cluster of MAs broken and then reversed back below
Go figure....Summertime is calling me (and it seems to have called the "market" as well).
The EURUSD just broke to new session highs and in the process moved above the cluster of resistance defined by 200 day MA, 100 and 200 hour MA at 1.1092-95 area. The stops were triggered and the price moved up to 1.1120. We are back down below the MA levels as I type in illiquid, choppy trading. Be careful. The market is not acting right.
July 4th week trading? The price action off what should have been a pretty good number, is suggestive of liquidity conditions which are not up to snuff. When the market is on holiday, you simply do not get the price action that is expected. Stops get triggered and then a quick reversal. We just saw that in the EURUSD and the USDJPY... twice.
Was it a bait and switch on the break of the MAs above? It is looking like it. A move below the 1.1055-60 will be eyed now. That was the close from yesterday. The pre-employment low was 1.1055. A move below give shorts some relief but remember...when liquidity risk is high it can lead to random swingy markets. They can be the most brutal to trade. So be cautious. What seems bullish turns bearish and what seems bearish can switch around and turn bullish. Traders have a choice to when they want to trade. Is it the best time? That is up to the individual trader, but for all, keep alert.
