There was one last move lower which took out the 61.8% and the low for the week, but quickly failed.
That led to a run back higher and back between, the 200-day MA at 0.6095, and the 100 day MA above at 0.61215. That is where the price is now.
Coming into the this week, the 100 and 200-day moving averages were key levels on the downside. As we end the week and look to next week, the same 100/200 day MAs will be key levels once again.
If the price moves above the 100-day MA on the topside, I would expect more upside probing with traders targeting 0.6167 to 0.61795 as the next target area. Move above and there will be more upside momentum.
Conversely, if the 200-day MA is broken on the downside, I woudl expect more downside mometum with traders once again targeting the 61.8% retracement at 0.60509. Move below and there should be more downside momentum.
This article was written by Greg Michalowski at www.forexlive.com.