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EURUSD retraces some of the gains from yesterday's sharp rise

EURUSD hold support against the 200 hour moving average

The  EURUSD  has retraced some of the strong gains seen during yesterday's trade. Recall from yesterday the price moved above its 100 hour moving average, it moved back within the red box that confined the trading range from April 27 to May 12, and moved back above its 200 hour moving average (green line currently at 1.04905).

The run to the upside was extended in the Asian session today to a high price of 1.0563, but that fell short of the topside swing area between 1.0567 and 1.05767 (see post from yesterday). The inability to get above that level led to a rotation back to the downside as buyers became frustrated with the lack of further upside momentum.

The move to the downside in the European session reached a low of 1.04936. That was right near the 50% midpoint of the range since the May 5 high (and the May trading range) at 1.04948. The price of the EURUSD also found support buyers just ahead of the 200 hour moving average at 1.04905 and the top of a swing area at the swing lows during the April 27 to May 12 up and down "Red box" area (swing area comes between 1.04709 and 1.04904).

As outlined in the post from yesterday, moving below the 200 hour moving average would not be something that buyers would want to see ("What longs /buyers do not want to see is a move below the 200 hour moving average currently at 1.0492"). The buyers did not see that - at least so far. They leaned and the price has moved marginally higher.

What now?

The story remains the same for the pair. The resistance target above found willing sellers leaning against it. The support target below found willing buyers leaning against it. The current price trades at 1.05244. The 61.8% retracement of the May trading range comes in at 1.05293. Getting above that level would give a little bit more about bullish bias with hopes for a run back toward the 1.0567 to 1.05767 level.

If the price can't get above the 61.8% retracement and moved below the 50% retracement/200 hour moving average/and back outside the red box below 1.04709, the story gets progressively bearish once again.

Yesterday there was a lot of hope for increased upside probing. However, that hope relies on getting through targets. That did not happen. Now buyers and sellers can battle it out (the roadmap is in place) and wait for the next shove either below support targets or above the resistance targets. Him

Trading analysis offered by RobotFX and Flex EA.