EURUSD comes under pressure as dollar strengthens
The expectation the US economy will continue to improve has led to a lower EURUSD today. The pair has also moved back below the 100 day moving average at the 1.4645 level. On Friday the price closed below this important level. Yesterday the price close back above and today it looks to be making the break to the downside. It is thought that longer term position traders are influenced by moves through the 100 day MA. The price has been above the 100 day moving average since the end of April.
On the shorter term 5 minute chart, the price action suggested a move was in order. The market non-trended for the last few hours of trading yesterday and continued that non-trend action for the first 7 hours of trading today. The two moving averages converged and the range narrowed. The price dipped below the 100 day MA line at 1.4645 and after consolidating for a few more hours, the break to the downside ensued.
On the downside there is support against the lows from Septembers corrections. Those levels come in at 1.4517/26. The market has found support against this level this morning (low 1.4525 so far) . Below that look for support against the low from October 2nd at 1.4480.
Longer term, if the market continues its belief the Fed is getting closer to tightening and if the data remains supportive, the target is the 200 day MA at the 1.4147 level currently. The 38.2% retracement of the move up from the low in February comes in at 1.4117.
On the topside today, resistance at the 1.4555 level and above that the 100 bar MA on the 5 minute chart at the 1.4578 level.
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Good day,Greg,
I was looking at the above 5m chart to know if there are clues about the
direction of the breakout/breakdown of this non-trending phase and I compare it
with another non-trending one.
It is the USDCHF 5m chart in the following link:-
http://forex.fxdd.com/66879/forex-trading/usdchf-breaks-above-100-day-ma-today
But I couldn’t find the clues for these two opposite pairs.one of them broke to the
downside and the other broke to the upside.
Could you please explain to me about if there are important and clear clues in
these two charts which tel about the direction of the break.
It is a good situation to be studied in my opinion.
Thanks and appreciation.
Regards,
S.Ghadeer