Hold that line. The EURUSD stalls the fall at the 200 hour MA/38.2% retracement. Bounces.

<p>The EURUSD dipped lower as popost-jobsolatility takes over. The technical's are also in play in the EURUSD pair.</p><p>The run to the upside today was able to extend above its 200 hour moving average and 38.2% retracement of the move down from last week's high at 1.1002. The break that the price to a high price defined by the 50% midpoint of the same move lower at 1.10303. Buyers turned sellers pushed the price back down.</p><p>However, the buyers held the support line at the 200 hour moving average and 38.2% retracement (you can add the natural support at 1.1000 as well), and the price has bounced.</p><p>What next?</p><p>Buyers are making a play. They took the price today above the 100-hour moving average (blue line) which stalled rallies last Friday, Monday, and again on Wednesday (give or take a few pips). The price also moved above the 200-hour moving average (greenline) which stalled the rise last Thursday. Moving above the 200-hour moving average was the 1st break above since July 30.</p><p>Of course, after trending lower, the burden of proof is still on the buyers to take out levels along the way. The next one is the 50% midpoint of the move down from last week's high at 1.10303. That was not done. Getting above 1.10274 is the next target to get to and through.</p><p>If the retracement was of the move down from the July high (see chart below) and not the lower swing high from last week (see chart below), the 38.2% retracement comes in at 1.10493. That level is also close to the swing highs from last Friday and Monday, and represent another target on the topside. </p><p>So although buyers are making a play, and staying above the 100-hour MA keeps them in play, they still have work to do to solidify more control. </p>

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