Tested support at MA level. Rallied modestly higher.
The EURUSD fell in Asian Pacific trading and approached the 100 bar MA on the 4-hour chart, The price pushed through that level on employment Friday earlier this month and took off. Today, traders put their trust against the level and the pair held and rallied (the MA came in at 1.1229, while the low stalled at 1.1233).
The rally took the price up to a high of 1.1277. The price has since moved lower and trades at 1.1253. The midpoint of the day is 1.12544. The midpoint of the move up from the May 30th low is 1.1256.
The pair is gathering more momentum to the downside as I type (relatively that is) and is now negative on the day.
Looking at the daily chart, we know from last week that the EURUSD stalled just ahead of the 61.8% of the move down from the May high to the May low. The fall from that peak ahs the 100 day MA at the 1.1211 level to shoot for. That also corresponds with the low from April 25th at the 1.12137. Should the selling get below the 100 bar MA on the 4-hour, that 100 day MA area should provide decent support on test.
The day activity is more bearish on the move lower and the fall below the 50% at 1.1254, but support at the 1.1230 level looms. It is a traders market. Which means the momentum could swing the other way . I would watch 1.1254 perhaps up to 1.1262 now. That is where the 200 and 100 bar MAs on the 5-minute chart is found (RISK level for shorts now)..
