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Stay below the 200 day MA keeps the sellers in control
The EURUSD moved below it’s 200 day MA late yesterday, and has been able to stay below today. The MA comes in around 1.1852. The high today was in the first hour at 1.1852. Stay below will be the key barometer for the buyers and the sellers. The pair had not closed below its 200 day MA since the end of May 2020. So staying below is key technically.
Drilling to the hourly chart below, the pairs move – and staying below the 200 day MA – was one step. The other was the break below the low from March 9 (low for 2021) at 1.1835. The pair did spike back above that level on the back of the better German PMI data today, but has moved back below. The pair is trying to stay below the level, but a move back above, may be an intraday barometer if there is more momentum. Be aware.
The 1.1835 is really close risk. The 200 day MA is a better barometer (traders will be looking for sellers around that area. If there is more momentum above, the sellers should start to give up on the downside, and should reverse. Without that, the sellers remain in control.