EURUSD retraces gains and test 50% midpoint of range since the June 26 low

The EURUSD has continued its move to the downside and currently is printing new session lows for the day and testing the 50% midpoint of the move up from the June 26 low. Earlier today, the low price reached 1.08059. The 50% midpoint comes in 1.08061. The price just reached a new day low of 1.08051 just below each.

Buyers in the early US session, traders took the price above its 100-hour moving average (blue line on the chart above) at 1.08354, but could not extend above the 200-hour moving average (green line on the chart above) target at 1.08505. The high price for the day reached 1.08488 just short of that target. The stall gave sellers the go-ahead to rotate the price lower.

At the London fixing, sellers gave another shove, and the price moved back below its 100-day moving average of 1.08354 and retested the 200-day moving average of 1.0818. Since then there has been another push toward the 50% level.

As outlined in the kickstart video this morning, the 100-day moving average at 1.07933 remains another target on a downside to get to and through to increase the bearish bias. Keep that level in mind through the FOMC rate decision.

On the topside, a move back above the 200-day MA followed by the 100-hour MA at 1.08354 is needed to shift the bias back higher. Get above it, and then the 200-hour MA, tilts the bias further to the upside.

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