The breaking of that floor area (see red numbered circles in the chart above) gave sellers the go-ahead to probe lower, and they took the pair to a low of 0.6828 toward the end of the day on a Thursday. The price did rebound at the end of the week and closed at 0.69374 on Friday.
Drilling to the hourly chart below, the bounce off the low on Thursday saw the price move above its 100-hour moving average into the close on Friday. The price moved back below the 100-hour mentioned above moving average on Monday. However, the low price on Monday’s trade did outstanding support against swing lows from Friday ahead of the extreme low from Thursday.
Searching for Clues
Buyers against that moving average supported the subsequent move back above the 100-hour moving average. The support holding gave the buyers the go-ahead to push the price higher into the close.
In trading today, the higher 200-hour moving average was broken in the Asian session and has stayed above that level.
The pair also broke the 38.2% retracement of the move down from the May high at 0.69954. That retracement level supports the US session dip – ahead of the 200-hour MA.
Those technical levels will be eyed for bullish/bearish technical clues.
If support can hold against those levels, the buyers can remain in control. A move below, and all bets are off for further upside momentum.