EURUSD bounces and back into swing area between 1.0853 and 1.0861

The EURUSD is bouncing higher and on the bounce has moved back above its 100 bar moving average on the 4- hour chart 1.0852. The price has moved back into a swing area between 1.08538 and 1.08617 (see red numbered circles). Move-up that level will have traders targeting the 1.0872 level.

It would take to move back below the 100 bar moving average at 1.0852 – and staying below – to put the sellers back in control.

Earlier today, the price fell below its 38.2% retracement of the move-up from the June low at 1.08394. That break led to more momentum to the downside, but the price fell short of its 200-day moving average at 1.08122. The low price today could only reach 1.0825 before bouncing back to the upside.

This article was written by Greg Michalowski at www.forexlive.com.