Back above the 100 hour MA
The EURUSD fell yesterday and in the process fell below a lower swing area going back to September (see yellow area) and outside an up and down range that was mostly confined by 1.0962 on the downside and 1.1100 on the topside. The bears were taking control.
Focusing on the hourly chart, the move below the yellow area next targeted the 200 hour moving average (green line) and then the 50% retracement (and swing lows from October 3rd at 1.09404) at 1.09394. The 200 hour moving average was briefly broken during the Powell speech yesterday, but the 50% midpoint held. The price rallied but tried to stay below the aforementioned yellow swing area.
In the late Asian/early London session, the price cracked above the area and the sellers turned more into buyers.
What now?
The prices move back above its 100 hour moving average. You can see the recent reaction around that level. Above is bullish. Below is bearish. It held support in a recent hourly bar. Bullish. ON a break below, the yellow area at the 1.0962-67 remains a level to get back below.
On the topside, a topside trend line comes in at 1.0990 and above that is the ceiling at the 1.1000 level.
