EURUSD is approaching the 100 hourly moving average again
Although the GBPUSD rallied during the European session on higher-than-expected UK CPI data, the EURUSD did not follow suit. Instead, the pair fell, breaking below the 200-hour moving average at 1.09531 (represented by the green line) and the swing zone between 1.0925 and 1.09438 (see the red number circles). The price reached its lowest point at 1.0916, falling below Tuesday’s low but staying above Monday’s low at 1.0908.
As the US trading session got underway, USD selling (EURUSD rally) started to take over again, causing EURUSD to rebound above the 200-hour moving average at 1.09531. The price approached the high of the day from the Asian session at 1.09833, and peaked at 1.09783 so far (selling 5 pips from this level). This high, together with the next 100 hourly moving average at 1.09856, is now acting as a major resistance level on the upside.
On Monday, the price swung above and below the 100 hourly moving average as the trading week began. However, the sellers gained the upper hand, and the price fell to a week’s low of 1.09081. Since then, the price has not risen above the 100 hourly moving average.
With the current price above the 200 hourly moving average, traders can consider the moving average at 1.0953 as support. Meanwhile, on the upside, the 100 hourly moving average at 1.09856 (and the peaks from Tuesday and today) is acting as resistance.
Amidst the ups and downs of the market, traders should decide where they stand on the dollar-euro dynamics: do they prefer a weaker US dollar and a stronger euro, or a stronger US dollar and a weaker euro?