The reverse momentum is difficult for a couple to understand
EURUSD fell higher today and rose above the 200-hour MA in the process. This MA arrives at 1.17929. However, the pricing operation failed to keep the price above this higher MA level. Therefore, the buyers turned to the sellers and the price has been lowered back. A return to the downside has now pushed the price to a 100-hour MA 1.17787 (see blue line). Some risk-focused buyers have now stuck their toes in the water.
If the price is back between a 100-hour MA and a less than 200-hour MA, traders are likely to use these levels as bias definitions. I know…. Moves above the 200-hour MA did not exactly lead to a bullish bias (it should have been). It doesn’t put much faith. Buyers had a shot. They missed.
However, sellers still need to take back less than 100 hours of MA to increase the downside bias.
It’s Monday and traders are trying to figure out the next moves as the trading weeks go by. Last week, there was a volatile price at low prices from Tuesday to Friday, supporting between 1.1751 and 1.1759. The low price of the Asian session found buyers ahead of these lower points at 1,1763. This contributed to a cumbersome higher movement. But failure beyond the 200-hour moving average still weighs the last. The battle is underway. Lots of pricing near the moving average.