Watching intraday support
The price of the EURUSD opened near its 100 day MA after skimming above and below that MA level during trading on Friday. The emergency Fed but sent the dollar lower/the EURUSD higher. The move took the price above both the 100 and 200 bar MAs on the 5 minute chart (currently at 1.11049 and 1.11338).
Since peaking just below the natural level at 1.1200, the price has rotated back toward the 200 bar MA on the 5-minute chart at 1.11337. The correction is also taking the price to the 38.2-50% retracement area at 1.11263 to 1.11433. The market is finding some support in the area. A move below, however, would tilt the intraday bias more to the downside again.
Taking a broader look at the hourly chart below, the pair on Thursday formed a topside trend line (see red numbered circles). That trend line comes in at 1.1212 today (and moving lower). It would be the next upside target on more momentum in that direction.
Get above and the:
- 38.2% of the move down from the Monday high from last week
- 200 hour MA at 1.12551, and the
- 100 hour MA at 1.12645 would be upside targets
The 50% of the decline last week would also be a potential target to get to and through.
SUMMARY: For now, the price action in the new trading day saw a strong bounce off key 100 day MA but resistance at 1.1200 natural level. The correction of the move is modest and above intraday support levels, which keeps the intraday tilt higher. However, the pair still has levels above that are key targets starting with a trend line at 1.1212. Getting above would be give buyers more confidence and control.