Is that it?

As London/European traders pack up their briefcases and head for the evening trains, the EURUSD dipped below the 100 day MA (and the 1.3600 level). The low? 1.3594.  That’s it!  Sellers are not showing they can take control. The bulls do remain in control.

In a trend move higher, it is important for the losers (i.e. the sellers) to show they can take back control. That may come from buyers turning to profit taking sellers or outright sellers entering and overwhelming the buyers – forcing the price lower in the process.   Failure, and those traders who are selling highs because the price is high, are forced to cover and the price continues to squeeze upward.

The next target above (on a break of the high) comes in at 1.36383.


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