The EURUSD moved today ay above its 100 hour moving average in the early Asian session, but backed off on the first break. The move to the downside tested the lower swing area between 1.0863 and 1.0872 (see yellow area and red numbered circles in the hourly chart above).
The price bounced higher and extended to a new session high but short of the swing highs from Wednesday and Thursday of last week at 1.0938. The high price reached 1.09325, and has rotated back to the downside over the last four trading hours.
That move lower has the EURUSD price dipping back below its 100 hour moving average at 1.08957 and tested the swing high from Friday’s trade in the process at 1.0891.
Will will now see more selling through the high from Friday and have the pair move back toward the low for the day (and swing area)? Or will buyers use the area (100 hour moving average and high from Friday) to push the currency pair back higher and toward the upper swing area between 1.0938 to 1.0944?
So far dip buyers are leaning but not running to the upside either.
