The EURUSD tested the 200 hour MA on Thursday last week and again today in the London morning session. The high price today reached 1.0703. That was just short of the 200 hour moving average 1.0705. The downward sloping trendline also cut across near that level along with the low of a swing area, helping to give sellers a low risk trading opportunity against the level.
The price rewarded the sellers as the price fell back lower and tested the high of a swing area ahead of the extreme low from last week's trading. The swing area cuts across between 1.0653 and 1.0668. The low price today reached 1.06694. The price has since bounced back up to 1.0684 currently.
It is holiday trading and the range is only 35 pips. The average over the last 22 trading days (around a month of trading) is 84 pips. So there isn't much movement.
However, the high and low so far have found the appropriate "leaning" action from sellers (at the 200 hour MA) and buyers (at the high of the swing area).
In between those level sits the 100 hour moving average (blue line), and intraday, the price has had some resistance against the level. If the sellers are to remain in control, staying below that 100 hour moving average would keep the bias to the downside.
I spoke to the levels in the weekend forex report. If you have not seen it, CLICK on the link below:
