Continues to trade between the goal posts defined by the 100 and 200 hour MAs
Early in the Asian Pacific session today, the EURUSD fell and tested the 100 hour moving average (blue line in the chart below). At the time, the moving average came at 1.0889. The low price for the day reached 1.0891.
The rally off the support, wandered higher and just tested the 200 hour MA at the 1.0931 level (the high price just extended to 1.09299).
So the pair is trading between the 100 and 200 hour MA. I call that trading between the goal posts.
As I commented in my last technical post last night:
"...Into the new day keep an eye back on the 100 hour MA (at 1.0890 level) for support buyers. If there is a break, look for momentum. If momentum is not there, do not be surprised to see the up and down continue and a new test of the 200 hour MA as time goes by. "
Time has gone by since that time and we currently trade at 1.0916and between the two extremes. It is just that type of market where if you get stuck in a rut, it takes time to get out. At some point, the "market" will make "a break for it" - the mud pit will be exited. That is, we will either extend above or extend below the respective MA bookends that are confining the pair.
For now, watch for support at the 1.0910 level. Remember that was the low on the daily chart going back to June 24. Although the price has been above and below over the last few days. However if you look at the 5-minute chart, the level sort of dissect bullish above, from bearish below(see RED horizontal line). The 200 bar MA on the 5-minute chart is rising toward that level too (at 1.0908 currently).
