The pair has corrected but the buyers still have a lot to prove
Although higher, the buyers has a lot to prove.
Looking at the hourly chart, the last trend move to the downside started on Thursday near 1.3033. The 38.2% to 50% retracement area comes between 1.28655 and 1.28977. The price rise has stalled within that “correction zone” . If the buyers cannot extend above the 50% midpoint of the last leg down, they are not winning. The sellers still remain in control.
Also in play is the falling 100 hour moving average. It currently comes in at 1.29078 (and moving lower). The price last traded above that level on September 3. It would take a move above that level to give the buyers more control.
So although, the buyers are making a play today, the move is so far just a correction in a premarket. Get above the 1.28977 level and then the 100 hour moving average at 1.29078 and buyers with take more control.
Drilling down to the 5 minutes chart, the price has moved below a rising trend line from the European morning session. The rising 100 bar moving average comes in at 1.28444. A move below the 100 bar moving average would be eyed as a intraday tilt to the downside.
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