The levels were resistance yesterday
The 50% of the move down from the Dec 10 high at 1.3555 and the 200 hour MA (green line) at 1.1357 was a resistance level yesterday for the EURUSD.
Today – the price moved above those levels (eventually) and took off. The high price stalled near the 1.1400 area (a swing area) and started to move back down.
The price bottomed at what was resistance yesterday – and support today – the 50% and the 200 hour MA (see earlier post).
It is a good level to stall. It makes sense technically. It defines and limits risk for traders.
What would make dip buyers more happy, is if the price can get back above that old trend line at 1.13687 and then the 61.8% at 1.13758. That would open the upside more.
DISCLAIMER: Note the ups and downs in the chart. There are moves up. There are moves down. The last run lower, did take out a low floor area at 1.1300, on the way to 1.12688 low. We have retraced to – and above the 50% of the recent range – but did stall near 1.1400 (natural level and swing area as well). So a move below the 50% (and 200 hour MA) would tilt the bias back to the downside.