In between, the price moved higher into the European/London morning session. The high price for the day extended to 1.28706. That was short of the next target at 1.28768 (high price going back to February 24).
A move back below 1.28117 would have traders looking toward swing levels between 1.2786 and 1.27939. The 100 hour moving average is also between those levels at 1.27889.
Below that level, the 38.2% and the rising 200 hour moving average are near the 1.2780 level.
Needless to say a rotation through those levels would increase the bearish bias as the market continues the up and down trading.
Conversely, if the buyers can continue to hold support against 1.28117, the dip buyers against the low would look back toward the swing highs for the day.
Recall just at two days ago, the Canadian jobs report came in much stronger than expected. That report sent the price down to the Friday low of 1.2693.
However most of the decline retraced into the close on Friday. During Monday’s trade, the price traded above and below its 200 hour moving average before finding support buyers against that moving average level in the North American session. The basing against the 200 hour moving average gave the buyers the go-ahead to run the price higher into the close. In the process, the price extending above its 100 hour moving average (blue line currently at 1.27889).
Sellers turned to buyers.
Now with the price extending toward the recent high extremes and finding sellers, does the pair retrace back toward the aforementioned moving average levels as the ups and downs continue? I would not be surprised.