The 100 hour and 100 day MA attract dip buyers
The EURUSDs rising 100 hour MA caught up with the 100 day MA near 1.2053 while the price was declining toward the level. The low price reached 1.20563 just a few pips above that dual MA support level, and found willing buyers who pushed the price higher.
The rotation erased the declines for the day and moved up to test the NY session high from yesterday at 1.20931. The high price reached 1.2092. The price is currently trading while I typ at 1.2080 (about 4 pips below the close from yesterday’s trading).
The buyers came in against the MAs. keeping the bias more bullish. Traders who like the upside for the pair (lower dollar going into the FOMC) have a risk defining levels at those levels. Stay above is more bullish. Move below is more bearish.
If the view is for the FOMC to change the narrative and the dollar to move lower (vs the EUR), The 1.2088-93 area is shaping up as a close risk defining level ahead of the high from yesterday at 1.21164.
Recall the high yesterday tested a topside trend line on the daily chart (see below) at the 1.2116 area. There is also the 61.8% at 1.21023 which is a topside resistance level.