Well....the first support level at least
The market today has continued to find support against support...well the first support level. That level comes in at the 100 bar MA on the 4-hour chart (blue line in the chart below)
Currently, that MA comes in at 1.08106. The low today did peek below that line for ever so brief a moment, but it moved back higher on buying interest. Below that level there are some other key levels including:
- The corrective low after the ECB decision on Dec 3 and then Dec 8th at 1.0788 and 1.0795 respectively,
- 50% of the move up from Dec 3 at 1.0788
- The 200 bar MA at 1.0773 (see green line).
On the topside watch 1.0852-63 area. A move above and stay above is more bullish confirmation for the support buyers.
The pair peaked on Tuesday against the 100 day MA (that is the top blue line that steps down). The pair has bottomed at the 100 bar MA on the 4- hour chart. The Fed tightened. There has not been much out of Europe. Sellers against resistance. Buyers against support. Trading near a bunch of support. Holiday weeks to come. Illiquid markets. New year just 2 weeks away. The Japanese confusion last night is a reflection of what could happen in illiquid markets. If you trade, trade with volatility and chop in mindset. Also it would make sense to pay attention to the technicals - they give you something to lean on.
