EURUSD trades lower and retests...breaks its 200 hour moving average

200 hour MA at 1.16305 is being broken

The EURUSD has move to a new session low and in the process is retesting... well now breaking... its 200 hour moving average at 1.16305.  Recall from yesterday, the price broke above both the 100 and 200 hour moving averages and raced higher. The pair moved above swing highs from October 19, October 21 and October 25 between 1.1664 and 1.16687 before peaking at 1.16916 (see green numbered circles).  

Today is a different story as the price moved back below those levels and has continued the stepping lower in early New York trading. 

As I type, the pair has just cracked below the its 200 hour moving average and looks next to test its 100 hour moving average (blue line) at 1.16197. A move below that level (and the swing area low at 1.16165 - see red numbered circles) would tilt the technical bias even more to the downside.

Holding the 100 hour moving average, would start the battle between the buyers and sellers between the moving average levels. A move back above the 200 hour moving average would have the midpoint of the move up from yesterday at 1.163662 get back above if there is to be a rebound back higher in play after the sharp fall. A move above that level would further neutralize the buyers and sellers at current levels.

For now, the sellers are making the play below the 200 hour moving average with the 100 hour moving averages next key target to get to and through

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October 30, 2021 at 12:54AM
Greg Michalowski
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