EURUSD stretches to the 38.2% retracement.Can the buyers make another run above the level?

<p>The EURUSD moved above its 38.2% retracement of the move down from the September 12 high on Friday following the snapback rally post the US jobs report. That level comes in at 1.05709.</p><p>Today, the price gapped lower at the open after the weekend news of the Hamas bombing in Israel. After a brief rally at the start of the trading day took the price back above the 38.2% retracement at 1.05709, buyers turned back to sellers and forced the price to and through the 200-hour moving average (green line in the chart). However, the 100-hour moving average could not be breached. Two separate tests so that 100-hour moving average resulted in buyers leaning. That was enough to push the price back higher and toward a swing area at 1.0551 and 1.05572. </p><p>More consolidation eventually led to a rotation back to the upside and above the swing area (above 1.0557). The price has now stretched back toward its 38.2% retracement.</p><p>Getting and staying above the 38.2% retracement after a trend move lower is important for buyers to prove that they are taking back control. They had a shot on Friday and earlier today but failed. </p><p>Can the buyers take another shot and get and stay above that level going forward?</p><p> That will be the question that needs to be answered as we head for the new trading day.</p>

This article was written by Greg Michalowski at www.forexlive.com.