The EURUSD has moved below the 100 day MA today at the 1.4335 level
and fell sharply to the 38.2% retracement of the move up from the July
low to the end of July high (at 1.4268). Traders have come in near the
level and taken profit. Now, the market will be watching the correction
to see if levels above give way. The first stop will be the 1.4298
level. This level corresponds with a ceiling level from Friday’s trade
(see chart above). When the price moved above this level, momentum
higher intensified. The other level the market will be eyeing is at the
key 100 day MA area (at 1.4335). This level also corresponds roughly
with the 38.2% retracement of the sharp move down in the NY session
today (see chart above). That level comes in at 1.4331 currently.
Staying below these levels, keeps the bears in charge.
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