The wish for the EURUSD to get outside the trading range happened but failed.
Traders have been waiting for the EURUSD to break out of its recent trading range, with 1.13616 serving as the key downside trigger. That break finally came today, seemingly granting the market's wish for a downside extension. Unfortunately for the sellers, the wish didn't last long.
The move below 1.13616 only reached 1.1354 before buyers stepped back in, producing a sharp reversal. The recovery gained momentum after the pair climbed back above 1.13775, shifting the short-term bias back to the upside and carrying the price to the 100-hour moving average at 1.13875.
So, what's next?
The first hurdle for buyers is the 100-hour moving average. A sustained move above that level would put the focus on the 200-hour moving average at 1.14065. Recall that yesterday's rally stalled almost precisely at that moving average before sellers took control and pushed the pair lower throughout the remainder of the session.
If buyers can finally break above the 200-hour moving average, the bullish bias would strengthen further. The next upside targets come in at yesterday's high of 1.1419, followed by last Thursday's high at 1.14352. Beyond that, traders will be eyeing last week's peak at 1.1450 as the next major resistance level.
For now, today's failed downside break is a reminder that false breakouts often trap early sellers. Buyers have regained the initiative, but they'll need to clear the key moving averages to convince the market that a more sustained recovery is underway.
This article was written by Greg Michalowski at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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