The EURUSD has fallen in line with the falling GBPUSD since the BOE rate hike near the start of the North American session, and the move to the bottom has picked up the price below its 200-hour moving average (green line in the chart above). ) currently at 1.05756. . The breakout sent the price down to the next moving average target at its 100-hour moving average 1.05411. The low price reached 1.05447 just above that moving average level.
Yesterday, the price of EURUSD moves back above both those moving averages after the FOMC rate decision. The pair closed above its 200-hour moving average for the first time since April 20. However, the high price – reached today – missed its 38.2% rebound from the move down from the April 21 high. That retracement level cut at 1.0648. The high price stopped just before that level at 1.0641.
In the London session, the corrective move to the downside stopped against the 200-hour moving average initially, and rebounded modestly before turning to the downside when the GBPUSD fell.
The price action restores the 200-hour moving average as a near resistance. Move up and the bias turns more in favor of the buyers soon.
On the downside, the 100-hour moving average at 1.05411 is now support. Move down and the bears will take more control.
The price is trading between the levels at 1.0561 currently and traders will again be looking for the next slide either to the top – above the 200-hour moving average – or to the bottom – below the 100-hour moving average.