EURUSD approaches 200 day MA
The EURUSD moved to a new session low and in the process dip below a swing area going back to March 8 March 9 and March 10 between 1.1864 and 1.18677. The low reached 1.1861. The pair currently trades back above that area at 1.1870. A move back below will be eyed by sellers/bears.
On a break, traders will start to focus on the 200 day MA currently at 1.18496. That moving average is moving up little by little and will force traders to make a decision. Break below and increase the bearish bias, or buy against the level and keep the buyers in control?
Looking at the daily chart below, the price is not traded below its 200 day moving average since May 2020. The price has now traded below the 100 day moving average since the last break on March 4. A move below the 200 day moving average would target the last swing low from November at 1.17994 (call it 1.1800). If the 200 day moving averages approached, I would expect dip buyers on the first look, with stops on a break below.