EURUSD backs away from 50%/100 bar MA on 4-hour chart

Swing levels also give sellers a reason to sell, but some support at broken neckline is now eyed at 1.1720 area.

THE EURUSD is higher in trading today. The price action has been up and down choppy at times, but the pair has marched higher.

Having said that, the currency pair has run into some overhead resistance at a cluster of resistance targets:

• The 50% of the move down from the May 14 high comes in at 1.1752
• The 100 bar MA on the 4-hour chart comes in at 1.17506
• There are some swing levels in the area too (see red circles)

The high for the day reached the 1.17443 level and has backed off.

Look for that area to be a pesky resistance area in trading today.

What may keep the buyers happy however, is that the move higher today did crack a neckline on a reverse head and shoulder formation at 1.1712 area. If the correction going on now finds buyers against that level (we trade at 1.1720 currently), that may give the sellers off the topside resistance cause for pause. It could also give the pair more rocket fuel for a break of the cluster.  So be aware.

So look for dip buyers at 1.1720 area. “Can the neckline hold and push higher?”, is the current trading question.