EURUSD chops up and down as the market digests the ECB decision and Lagarde presser

EURUSD trades above and below its 100 hour moving average

The EURUSD is chopping up and down as markets digest the ECB decision and Lagarde press conference (to be ongoing for the next 40 minutes or so).

Looking at the hourly chart above, the headlines from the decision sent the price initially higher and briefly above its 200 hour moving average 1.18073.  However, that run to the upside was quickly reversed with the price extending to a new session low down near 1.17708. That level was the swing lows going back to July 13/14. The floor and ceiling have been found.

The price has bounced back up toward the 100 hour moving average at 1.1790, and traded above and below that moving average level currently. That is also near the midpoint of the day's trading range.  

Flip a coin?

What we know, is that the price rise found sellers near the 200 hour MA. On the downside, the price fall found support near a swing level (ahead of other swing lows seen this week at 1.1763 and 1.17512).  The price action above and below the 100 hour moving average (blue line) is indicative of a market that is unsure which way to push.  So it sits in the middle/it chops near the middle until a more solid view is known.  

July 23, 2021 at 12:47AM

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