Home / Forex Treiding / EURUSD trades up to floor/ceiling area. Backs off.

EURUSD trades up to floor/ceiling area. Backs off.

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The 1.14315 is a “cult-like level” for bulls/bears

Looking at the hourly chart, the 1.41315 level has developed a reputation for being a “cult-like level” for bulls and bears (Red horizontal line in the chart below).   
The price has been a floor. It has been a ceiling.  On Employment Friday last week, the price did move above the level in pre-release positioning, but fell back lower on the release.

Yesterday, the price action was initially to the downside. The pair moved below it’s 100 hour MA (blue line in the chart above) but that failed. The price moved higher and after some ups and downs in trading today, the price just pushed higher to touch the level (well the high reached 1.14324 – just a pip above).  The price has backed off a touch since reaching the new high. 
The battle is ongoing with sellers leaning against the ceiling level and buyers trying to push above the line and head toward the 1.1455-609 area (high from Friday and 50% retracement).  
When you have a line in the sand that becomes “cult-like” it does this. On a break, look for more upside momentum (sellers here, cover with limited risk).  Stay below, and the longs looking for a run above, should lighten up and the ups and downs continue (100 hour MA at 1.13843 is support). 

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