Still above the 200 hour MA
EURUSD soared and in the process hit a 38.2% decline from the Jan 6 high of 1.21658. The high price reached 1.21723 but quickly reversed and is currently trading around 1.2150. Lagarde said the appreciation of currencies is a drag on inflation. This detracted from the bullish movement – at least for now.
Technically, the pair was able today to break above the 200 hour MA today (it moved above yesterday, only to fail fairly quickly). So far the price has been able to stay above the level for the last 6 hours. This MA arrives at 1.21340. An oscillation zone is between 1.21315 and 1.21364 and increases the importance of the zones IF buyers must maintain control. Move below and all bets are off for buyers. The sellers would regain control with another 100 hour MA test in the cards.
On the top, saying it as it is, the price must go above 38.2% and stay above. Not being able to do this will disappoint buyers. It would just be a simple vanilla fix. It is not something to rely on from an optimistic perspective.
So there is a battle going on given the failure above 38.2%. The price remains near the 1.2150 level, but the momentum has been given a quick punch in the gut. If the price can hold above the 200 hour MA, there may be another higher run, but a move below and the hash higher from Monday’s low, was a simple vanilla correction from the recent drop in January.