The EURUSD consolidates after the rise yesterday

Holds support near swing area at 1.1580 to 1.1586

The EURUSD is consolidating after the gains yesterday pushed the price up to retest its 100 hour moving average currently at 1.16079.

The price stalled against that moving average and moved down to test the 38.2% retracement of the move down from last week's high at 1.15946 in the Asian session, bounced up and through the 100 hour moving average, but stalled at the 50% midpoint of the same move lower (from last week's high).  

The buyers gave up. The price move down and retested a swing area between 1.1580 and 1.1586 (the low reached 1.1585). Buyers entered and moved the price back toward the 100 hour moving average (the early US session high just reached 1.16055). 

So overall, the price remains below the 100/200 hour moving averages on the topside. It will take a move above to increase the bullish bias. 

On the downside, support also held and getting below the swing area between 1.1580 and 1.1586 is the goal for sellers to increase their bias advantage.

The up and down price action between the levels is suggestive of a consolidation/breath after the sharp move down last week and the rebound yesterday. If there is a control bias, it would be in the favor of the sellers with the price below the 50% midpoint and the hourly moving averages. However, given the overall ups and downs seen in the market, a shift back to the upside cannot be ruled out (with stops on a break above the 200 hour MA). For now however, buyers and sellers are playing the ranges and waiting for the next shove

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November 03, 2021 at 12:45AM
Greg Michalowski
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