Stall ahead of the level in trading today
Friday’s tumble lower took the EURUSD down to test the swing lows from November 28th at 1.1266. That took the pair out of the up and down red box with 1.1304 as a lower extreme.
Today, the price moved back into that box in the early Asian session and built a rally higher. The last three hourly bars have extended toward some key resistance defined by the 200 hour MA and the 50% retracement at 1.1355-56 area. The high for the day reached 1.13525. Just above that is a downward sloping trend line at 1.1360. There is some traders leaning against the resistance levels.
If there is a break, there could be some buying from the “low risk” sellers.
For the sellers against the resistance, getting and staying below the 100 hour MA at 1.13388 level and then the 38.2% at 1.13349 will tilt the bias more to the downside. As the high tests the 200 hour and 50%, the low over the same period holding against the 38.2% and the 100 hour MA. The battle is on.