EURUSD is trading with a small negative bias in the short term to start the new trading week. The pair is trading below the 100/200 hourly moving averages today (at 1.09095 and 1.09203 respectively – blue and green lines in the chart below). Remember from trading on Thursday and Friday, the price briefly moved above the 200 hourly moving averages in corrective moves, but each was rejected fairly quickly. A return above the moving averages – and staying above – is necessary to increase the bullish bias today and going forward
Keeping the buyers in play is that dips in today’s early European session found support for buyers ahead of the 38.2% retracement at 1.08673. The lowest price for the day was 1.08695. The price also came back above what I identified as a value swing zone between 1.0866 and 1.0896 (see the red box in the chart below).
EURUSD has a modest bearish slope.
If the 100/200 hourly moving averages are broken to the upside, that will open doors for a test of the downward sloping trend line at 1.0930. Friday’s high reached 1.09315. Clearing this area will make traders look for the swing top between 1.0962 and 1.0973.
On the downside, a break below 38.2% retracement at 1.08673 will have traders targeting that area between 1.0842 and 1.08485.
