EURUSD trended steadily lower today after finding willing sellers ahead of its price The 200 hour moving average is at 1.1634. The session reached the highest level 1.1633It fell one pip below this key technical level before pulling back. The bearish move extended into the North American session, where the pair tested a sloping upward trend line connecting the recent hourly lows.
This trend line currently intersects near today’s low at 1.1595Which helps generate a modest bounce. However, the most important support area is located directly below 1.15768 and 1.1586an area that has served as a major swing level in recent weeks. A break below this support area would take the pair to its lowest level since then April 7 This will likely lead to another wave of selling momentum.
On the upper side, The 100 hour moving average is at 1.1638the The 200 hour moving average is at 1.1634and The 50% midpoint of the rise from the March low of 1.16287 An important resistance bloc is now forming. These levels act as the main bias identification zone for traders. As long as the price stays below that range, the technical advantage remains with the sellers. A move back to the upside would shift the bias back towards buyers.
Looking at the broader picture, EURUSD has spent most of the past 12 trading days confined to a range between… 1.1576 and 1.1667. The 100 and 200 hour moving averages, along with the 50% midpoint, are located near the center of this range and have been a battleground between buyers and sellers. Eventually, the pair is likely to break out of the consolidation zone and generate a more sustainable directional movement. At present, however, Sellers have the upper hand as the price trades below the key hourly moving averages and pushes towards crucial support.
