Technical Analysis

EURUSD inches back toward the 200 week MA. Buyers try to bottom the pair.

A move above could solicit more buying. Here is why…

The EURUSD is inching back toward the 200 week MA at the 1.1356 level.   As posted earlier, the price moved below the 100 week MA last week. This week it has seen a break of the 200 week MA (first time below since November 2017).  If it can stay below, the bears would stay in control. A move above would take some of the selling scare away, however. Be aware in the new day.

What may help the technical picture is looking at the daily chart, the price today stalled at the 1.1300 level. That level was between some swing levels (at 1.1282-1.1312) going back to September 2016, November 2016. In June and July 2017, the price tested then broke above the area.  

It wasn’t until today, that the area was re-tested and buyers came in.

Now the correction has been somewhat modest so far. 

However, looking at the hourly chart below, the pair is trying to get and stay above a topside trend line at 1.13387.   A little more bullish for the buyers.  

If the 1.1356 level (200 week MA) and the lows from Monday at 1.1365 can be broken, then the 100 hour MA at 1.1401 (and moving lower) would be the target.

SUMMARY.  The fundamentals are not saying buy, buy, buy. However, there is some buying at a key support target and if a break of the 200 week MA fails at 1.1356, there could be more reasons – at least technically – for more buying.

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