EURUSD hanging near the midpoint of the move up from the August low
Between the 100 and 200 hour MAs
The EURUSD is hanging near the middle of the range since the end of August low. That level comes in at 1.19573 - about where the price is trading now.
The pair has had an up and down trading day today. The low - reached early in the NY session - stalled at the 61.8% of the move up from the end of August low. That low was below the 200 hour MA at 1.19418. The move back above the 200 hour MA, turned the trading bias back higher, but the pair stalled ahead of the high for the day at 1.1978.
Putting the price action into perspective.
- The 100 hour MA is ahead at 1.2986
- The 200 hour MA is below at 1.19418
- The 50% is between at 1.19573.
- The price action is up and down
All that says to me the market is not sure of the direction.
So how do you trade it?
Use the levels like the retracements and the MAs. The buyers on the failure of the 200 hour MA break (and holding of the 61.8%) bought relatively low. The price moved 30 or so pips.
If the price were to retest the 200 hour MA or the 100 hour MA on just a wander, I probably would be tempted to stick a toe in the water and see if there is a move away. However, you can't get too excited as we trade into the NY afternoon.
The market traders might also be distracted by what the new iPhone looks like...