The EURUSD seems happy to sit and wait, but such action does not last forever. So be aware and prepared. The range today has been a pathetic 48 pips. Ranges in all the currency pairs are low (in relation to 20 day averages – see chart). There is plenty of room for an extension at some point today. Look for a break and momentum.
The high today in the EURUSD 1.2588 the low is 1.2540. The price sits in the middle currently. The price is above the 100 hour MA at the 1.2529 currently which gives a bullish bias as long as the price stays above it. Channel (bull flag – flag pole up from the low this week, correction consolidation) levels come in at 1.2582 on the topside with the downside trend line at 1.2532 – just above the 100 hour MA (at 1.2529). Not far below that key area, is the 200 hour MA at 1.2518.
Other levels to consider today:
Above:
- 1.2609 – High from yesterday
- 1.2623 – Low from January 2012 (low for year before the level was broken in May)
- 1.2667 – 38.2% of the move down from May (high this month as well)
Below
- 1.2498 – Close from last Friday
- 1.2472 – Low from yesterday’s trade
- 1.2434-41 – Series of lows going back to June 6th
Traders today will use the trend lines to sell/buy against and look for the break with momentum. There is room to roam today with the range so contained. Yesterday, the price squeezed higher, using the 100 hour MA as a spring board. What will today bring?
