The EUR/USD pair fell below the 200-day moving average at 1.08173, preceded by an extension of the decline on the back of a technical breakout. However, once the price reached the 200-bar moving average on the 4-hour chart and the 100-day moving average between 1.07946 and 1.07994, buyers stopped the decline, and there is a modest rebound to the upside.
This bounce has brought the price back to the current 1.0808 level.
In the future, the two daily moving averages will help determine the bias.
- If the price can move back above its 200-day moving average at 1.08173, it will shift the bias further towards the buyers.
- If the price can move back below the 100-day moving average at 1.07946, it will shift the bias further towards the sellers.
Between these two moving averages is the midpoint that represents 50% of the range since the pair’s June low at 1.0806. The presence of this set of moving averages near the middle of the range is consistent with the bullish and bearish trading range that prevailed in the pair in 2024.
