EURUSD looks toward 100 hour MA | Forexlive

Despite the GBPUSD rallying during the European trading session due to higher-than-expected UK CPI data, the EURUSD did not follow suit. Instead, the pair declined, breaking below the 200-hour moving average at 1.09531 (represented by the green line) and a swing area between 1.0925 and 1.09438 (see red number circles). The price reached its lowest point at 1.0916, dipping below Tuesday’s low but remaining above Monday’s low of 1.0908.

As the US trading session commenced, dollar selling (EURUSD higher) began to dominate once more, causing the EURUSD to rebound above the 200-hour moving average at 1.09531. The price approached the day’s high from the Asian session at 1.09833, peaking at 1.09783 thus far (5 pips short of that level). This high, along with the subsequent 100-hour moving average of 1.09856, now serves as key resistance level on the topside.

On Monday, the price oscillated above and below the rising 100-hour moving average as the trading week began. However, sellers gained the upper hand, and the price plummeted to the week’s low at 1.09081. Since then, the price has not risen above the 100-hour moving average.

With the price currently above the 200-hour moving average, traders can consider that MA at 1.0953 as a support level. Meanwhile, on the topside the 100-hour moving average at 1.09856 (and highs from Tuesday and today) acts as resistance.

Amid the market’s up-and-down volatility, traders must decide their stance on the dollar-euro dynamics: do they favor a weaker USD and stronger EUR, or a stronger USD and weaker EUR?