EURUSD backs off to trend line support

The EURUSD reaches the July highs and backs off

The EURUSD trended higher into the NY session and looked toward the July highs at 1.1904-08. The high reached 1.19043 but could not go any further. Sellers leaned and the price has rotated lower over the last 3+ hours. See the earlier post.

The move to the downside has reached a lower trend line at 1.18549 and is trying to stall.

In the earlier post, a move below the swing area at 1.1801-089 and then the 100 and 200 hour MA would be needed to take the “bull” out of the market.

However, since the high could not be broken, that has helped to take “some bull” out of the market price action. Simply put, the momentum could not get above the old high target. If a target can not be reached/passed, a correction is likely. So, momentum faded in the EURUSD and sellers – leaning against the upside target – held on to win a battle against the buyers.

What next?

A move below the trend line would give the sellers a little more comfort. Then the swing area at 1.1801-089 can be eyed, along with the rising 100 hour MA.

What if the trend line holds?

The buyers are winning and we could see another run to the high.

Trading bias can swing back and forth dependent on support and resistance. Today, the EURUSD was looking real bullish until it ran into the prior high. Now the battle is on between the buyers and sellers.
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This article was originally published by Forexlive.com. Read the original article here.