Falls below 1.1100 as NY traders enter but rebound back above.
The EURUSD dipped below the 1.1100 level as NA traders entered for the new day/new week. The price could only get to 1.1097 before rebounding. It currently trades at 1.1116.
The corrective low on Friday extended to 1.1080. The 100 hour MA has moved to 1.1065. The 38.2% is also at that level as is the high level from Feb 26 and the low from Feb 19. If there is a target on the downside today where support buyers should really have interest, it would be against that level. Of course we are 45-50 pips away from that level at the moment.
Traders remember history and on Friday, the market was lower in the early hours of trading in the NA session and the price rallied all the way back higher. Looking at the 5-minute chart to Friday, the price started to gain more upside after moving away from the 100 bar MA (blue line in the chart below). The 100 Bar MA currently is at 1.1135 and moving lower. That is a risk level for those who are short now. The 50% of the day's range is also near that level. Stay below and the price is down on the day. The market corrected to a reasonable resistance level intraday.
Is the selling great. No. Let's face it, the sellers have not been able to retrace 38.2% of the move higher from the ECB's mad day on Thursday. The price is also still above the 100 and 200 hour MA. So...yes the price is down on the day, but big deal.
