The EURUSD has moved to a new low for the day and in the process is moving closer to the lows for the week.
Looking at the hourly chart, the price has been waffling up and down in volatile trading this week. On the topside, the high price has a solid ceiling near the 1.0657 area. On the downside, lows from Monday and Tuesday came between 1.0575 and 1.0578. The 80-ish trading range is narrow and indicative of the up and down holiday like trading where buyers and sellers are chopping each other up between the bookend extremes.
Today, the price is back below the 100 and 200 hour MAs which are basically converged at 1.0615 area and near the middle of the range. The break and run lower took the price low today to the “yellow area” in the chart above between 1.0584 to 1.0594 (see green numbers circles). That moved below the 50% midpoint of the December range at 1.05889 which stalled the fall yesterday.
What now?
Can the price move to and through the low for the week and extend further?
Traders who want to see that happen, probably don’t want to see the 100/200 hour MAs broken to the upside now.
Conversely, for the dip buyers, they DO want to see the price move back above those MAs and tilt the bias back to the upside toward the upper extreme. With an 80- pip trading range, the lows and highs are not that far away.
With the ups and downs, traders looking for a break of the non trending are hoping for a break and run. However, if it does not happen, get out.