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Past performance is not a guarantee of future results. Please remember that technical analysis is only a tool for trading and even targeted analysis is no guarantee of profits. Forex trading carries a substantial risk of loss and only discretionary capital should be used in trading.

Forex Trading: EURUSD tests 100 hour moving average....AGAIN

Posted by Greg Michalowski on Wed, 08/20/2008 - 1:31pm in

 

The EURUSD is testing the 100 hour moving average once again.  The level is currently at the 1.4732 level. 

Over the last 24 hours the currency pair has been wafflling above and below this key moving average on the intraday chart.  Each move, above and below, the pair has not been able to sustain a move higher or lower.  From a trading perspective, the uncertainty is actually a key clue that at some point, the market will get tired of the area/level and a bigger move is likely.  In the meantime, a break above requires a long position and a break below, signals a short.  The result may be a series of small losses, but a bigger move is what the trader should be after in this instance.