EURUSD stays below the 200 hour MA on the correction higher
With the price action today in the EURUSD, you have to wonder if we are just setting ourselves up to next connect to the CPI. That is, are we stuck in the 15 day trading range until that data potentially breaks us out of the up and down trading range?
The price action today saw the pair move down sharply, BUT find support at a higher high for the third low in a row (since July 27, the low on July 28, August 3 and again today were each higher). That is somewhat bullish, or at least there is some buying support on dips..
However, the corrective move higher today – after the fall – stalled right at the 200 hour MA which is the lowest of the 100/200 hour combo. The 200 hour MA comes in at 1.01933. The 100 hour MA comes in at 1.02047.BTW the high yesterday and today stalled at a lower swing area near 1.0254 to 1.0257.
The storyline remains…. That is, it would now take a move above the MAs to give the buyers more control. Stay below and the sellers are winning, however, they still have work to do. Not only must the lows seen of late be broken, but the price needs to get outside the box that has confined the pair now for 15 days and stay below if the sellers are to keep control .
If that does not happen and the price moves back above the yellow area defined by the 10/200 hour MAs, the buyers will have to answer to the work they need to do to get above the upper extremes and break out of the box to the upside.