Run higher on Wednesday, reversed over the last few days
The EURUSD moved and closed above its 100 day MA on Wednesday at 1.14766 (blue line in the chart below).
The pair had tried life above the MA intraday on Monday and Tuesday, but backed off each day. On Wednesday, the dollar got hit on the back of some dovish Fedspeak, and FOMC minutes that were congruent with a “wait and see” Fed. Technically, the break turned sellers into buyers. The price shot higher and also cracked above the 1.1500 area that stalled the rises going back to October 22nd.
Yesterday and today, the price moved back down. In trading on Thursday, the pair was able to close right at the 1.1500 level. Today- after a run higher stalled near 1.1540 – the price cracked below the 1.1500 level, and continued right back below the 100 day MA at 1.14769.
The buyers FAILED on their trip outside of the near 3 month trading range.
We head out of the week with a more bearish bias. Only a move back above the 100 day MA and 1.1500 level will change that bias.
Close downside target comes in at the 1.1444. That is home to the 38.2% of the move down from the September high. The underside of the old trend line also comes in near the level.