Worth falls again underneath the 100-hour shifting common
After failing to carry a agency break above the 1.1400 deal with in a single day, the near-term worth momentum is now encountering some hassle as worth falls again beneath the 100-hour MA @ 1.1372. The reversal happened after patrons didn’t clear the swing area resistance round 1.1410-20 and the US This autumn GDP report confirmed that the US financial system slowed less-than-expected.
Since then, worth fell again beneath the 100-day MA (which sits at 1.1386 right this moment) and is now taking a peek slightly below the 100-hour MA as effectively. That is placing the near-term bullish bias in jeopardy.
There may be some minor assist round 1.1360 earlier than the 200-hour MA (blue line) is seen @ 1.1355. The latter is a key stage to be careful for in buying and selling right this moment as a break beneath that may see sellers regain near-term management.
Of word, there are massive expiries sitting at 1.1350 rolling off later so be cautious of that forward of US buying and selling. That might probably draw worth motion to the draw back in the meanwhile earlier than issues turn out to be clearer later within the day.
I’d nonetheless argue for shorts simply above 1.1400 and much like yesterday, except worth firmly breaks above 1.1420, there’s purpose to nonetheless imagine that upside stays restricted round these ranges forward of the ECB assembly subsequent week.