Support is well defined. Resistance levels are known. But the market is stuck
The EURUSD is stuck. German GDP was negative. EU industrial production was weak as well, but the EURUSD could not get below the 1.1162-67 area or the low of “the range” (red boxed area). Today the lows came in at 1.11642 and later at 1.11654 – right between that support area. Support is well defined with six swing levels in that range going back to July 31.
On the topside of “the range”, there are a few levels with the 100 day MA at 1.1221 a barometer for bulls and bears. The problem is the 100 day MA was broken on Monday and Tuesday but stalled not far away at 1.1229 area. On August 8th last week, the highs also broke the 100 day MA and stalled quickly near 1.1229.
If the price is to break higher getting above the 100 day MA is step one, then the swing area up to 1.1230 (see high yellow area). Finally, the 1.1242 and the 1.12489 August highs will complete a break higher progression (they were extremes for the pair that failed).
In between sits the converging 100 and 200 hour MAs at 1.11857-947 (blue and green lines). Think of them as a intermediate barometer for the bulls and bears. The high today moved in between but not above (we currently are below).
So the market waits for the next shove. I don’t know what it will take (weaker EU data did ont do it today) but the levels are fairly well defined as the pair remains in “the range”.