The EURUSD pushed higher in the early Asia-Pacific session, extending toward its key 100-day moving average at 1.15677. The rally stalled just short of that level, peaking at 1.15581, before buyers lost momentum and sellers regained control.
The initial pullback found support near the broken 38.2% retracement of the decline from the April high at 1.1524, but the ensuing rebound ran into resistance at 1.15356—the high from Thursday’s trading. That failure encouraged another wave of selling, with the pair now testing an important swing area surrounding the 1.1500 level between 1.14989 and 1.15060.
That swing area is now the next key barometer. A sustained move below it would give sellers greater control and open the door for a test of the rising 100-hour moving average at 1.14715. That moving average also aligns with a former ceiling from mid-June, making it an important downside target. Sellers looking for additional momentum will want to see the price break and stay below both the swing area and the 100-hour moving average.
On the topside, buyers need to reclaim the 38.2% retracement at 1.1524 to shift the short-term bias back in their favor. Doing so would target 1.15356, with a break above that level putting the focus back on the 100-day moving average at 1.15677. Staying below the retracement, however, keeps sellers holding the near-term technical edge.
This article was written by Greg Michalowski at investinglive.com.