EURUSD tests 200 hour MA. Look for support against level

Written January 31, 2012 at 12:06 PM EST by  

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The EURUSD has moved down sharply after falling below trendline suppot and the 100 hour MA at 1.3128. The pair is now down testing the 200 hour MA and this should slow the pairs decline (at 1.3048). When the 100 and 200 hour MA are so far apart, the market does tend to use the 200 bar MA level as support on the first look (Trading Between the Goal Posts).  I would expect profit taking buying against the level with stops on another move below the low for the day at the 1.3041 level.

On the topside, the low from Monday at 1.3076 will be first resistance. Abovet that he 1.3094 level is the 38.2% of the steep move down over the last few hours of trading. See chart below.

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Categories: Forex Trading  |  

7 Responses to “EURUSD tests 200 hour MA. Look for support against level”

  1. Muhamad Khalil on January 31st, 2012 5:47 pm

    Greg, you are brilliant… i have to say it is hard to only fall in ”like” with Forex as you say, when there are sincere people like you out there benefiting the rest with their knowledge of Forex. I am a newbie at this, and actually very comfortable with the 3 tools you use.

    All the best and thank you.

    Muhamad Khalil

  2. Greg Michalowski on February 1st, 2012 9:50 am

    Thank Muhamad. I want you all to learn so you can stand on your feet and love forex trading (not always love the market!)

  3. kenny on February 4th, 2012 11:54 am

    Thanks very much Greg. I just bought your book “Attacking currency trends”.
    I have learnt a lot from it. I would like to ask where this doted red line came from? Its very good S/R line. Can the line be plotted on 5min chart and 1hr chat with the same number?

  4. Greg Michalowski on February 6th, 2012 8:23 am

    Thanks…I am glad you like the book. Regarding the horizontal “remembered line” (dotted/dashed line), I will simply draw hortizonal lines where there are levels that the market tends to lean against either as support or resistance in the past. These areas tend to continue to be levels where the market does not spend a lot of time near. In other words the market tends to move away from them. You can use them on other charts as well.

  5. kenny on February 6th, 2012 8:52 am

    ” I will simply draw hortizonal lines where there are levels that the market tends to lean against either as support or resistance in the pas”
    Could you please clear me on that with example. I mean where I can get the line from. Is it from daily high or what? I need for 15min chart

  6. Greg Michalowski on February 6th, 2012 8:56 am

    Are you talking about the line going horizontal or the line slanting to the upside on the chart.

  7. kenny on February 6th, 2012 12:08 pm

    Horizontal red dotted line

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