EURUSD corrects back higher after failure below 100 day MA.

The EURUSD moved below the 1.3118 level where the 100 day MA was found and support trendline on the hourly (see chart above) is also found. This triggered selling in the process.

However, true to recent activity, the price break failed, and this caused a modest move back higher. That correction has taken the price up to the 100 bar MA on the 5 minute chart at the 1.3135 level currently. The price has tested this MA line 5 times today and each time, the price has moved lower. WIll it do it again?

Overall, the NY trading range is 42 pips in the pair. The range for the day is an average 105 pips. With London gone, the stock market which opened down and has since traded in a 58 point trading range (for the Dow – 12,913 to 12,845), may just be the focus. Stocks go up and the EURUSD (risk) can go up. If the stocks go down, a move back lower can be expected.

Of course in the process a move above technical resistance at the 100 bar MA at 1.3135 may be a reason for the shorts to throw in the towel and buy too. Tomorrow is another day.

For this afternoon, 1.3156 is the the midpoint of the days range and a target above. 1.3118 continues to be a key level below.