The EURUSD pair experienced a halt in its upward movement as it approached the 100-hour moving average (MA) and the 38.2% retracement level. Despite testing the MA twice, the pair failed to break above it, leading to a shift in momentum from buyers to sellers. As a result, the price fell below a previous support level and currently hovers around 1.0551. Although buyers had some control in the short term, their position weakened, and they now have more to prove in the medium term by surpassing several key levels, including the 100-hour MA, the 38.2% retracement level, and the 1.0606 – 1.0616 area.
In the late US morning, the EURUSD saw an upward movement until it reached the 100-hour MA and the 38.2% retracement level, indicating a potential trend reversal. However, the pair was unable to rise above the MA, resulting in sellers gaining traction and pushing the price lower. This downward pressure caused the price to drop below a recent support level at 1.05541. Currently, the market is experiencing a balance between buyers and sellers in the short term, as buyers’ ability to drive the price higher is limited.
Looking ahead, buyers need to overcome multiple hurdles to regain control. It is crucial for them to surpass and sustain levels such as the 100-hour MA, the 38.2% retracement level, and the region between 1.0606 and 1.0616. Achieving and maintaining these levels will demonstrate buyers’ strength and their ability to alter the medium-term trend. For now, sellers have gained an advantage, and the market remains uncertain as buyers’ potential is yet to be proven.