In the process, the price initially moved back above its 200 hour moving average currently at 1.1004 (green line in the chart above). That moving average had held resistance for the day until the break higher. However the price has since moved back below that level. The price is currently trading at 1.0992.
A move back above the 200 hour moving average would tilt the bias more to the upside.
Remember, the 100 hour moving average below (blue line) has also held support today. So there is some buying interest against that technical level. As a result getting back above the 200 hour moving average and staying above would be positive technically.
Having said that, it’s Friday going into the weekend where geopolitical risks remain high. Headlines are influential. The US is expected to announce even more sanctions today. Pres. Biden is reported to revoke normal trade relations with Russia when he addresses the nation later this morning.
The market seems to be short, but the high price for the week did still find willing sellers against the swing area defined by the January and February swing lows between 1.11060 and 1.11207. The price high stayed below the 50% midpoint of the move down from the February 11 high as well keeping sellers in play.
The low this week was reached on Monday at 1.0805. That was the lowest level since May 2020. The price moved above the 100 hour moving average on Wednesday and has stayed above it with the test of the moving average today.
Buyers and sellers are battling it out. The moving averages on the hourly chart will be bias and risk defining levels as we head into the weekend.
US stocks are higher ahead of the opening, but off premarket high levels. A snapshot of the market shows:
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