EURUSD chops up and down as buyers and sellers take turns beating each other up

Buyers and sellers in a playground fight

The buyers and sellers in the EURUSD are beating each other up in what is turning into a playground fight with haymakers flying but little in the way of meaningful connections.

The price of the EURUSD is near unchanged on the day after moves up and down failed to ignite any momentum in the direction of the breaks.

It might be safe to say that intraday traders are taking punches - and giving punches - and buyers and sellers are getting tired in the process. It might take a new fighter to step in to take control at some point (is it Powell, stocks, interest rates or PMI/ISM data?)

Looking at the hourly chart, most of the price action since midmonth November has been between 1.1228 and 1.1385. Between are some swing areas including 1.1321 to 1.13315.  Unfortunately that swing area has been in the middle of the price action today, neutralizing its impact.

Since that swing area is being ignored, focus will move toward the lower swing area on the downside between 1.1287 and 1.12942. The 100 hour moving averages moving toward that level as well (currently at 1.12857), increasing that area is important.   A move below would increase the bearish bias, while staying above keeps the tilt more in favor of a run to the the high at some point

On the topside, the 1.13735 to 1.13852 and the 38.2% retracement between those levels at 1.13787 would be the topside target on further momentum. Getting and staying above that level would take the price outside the larger "red box" that has confined the range since mid-November.

For now, however, it is a coin flip on who will win this fight.   There are plenty of punches but little in the way of damage to either fighter.

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December 02, 2021 at 02:25AM
Greg Michalowski
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