The EURUSD tested the 38.2% of the move down from yesterday’s high (see chart above) and reversed. The price decline has fallen below the 50% of the 2012 trading range for the pair at the 1.3053 level but momentum is limited.
The range for the EURUSD today remains narrow at 60 pips versus a 20 day average of 119 pips. As a result, a range extension is possible (low reached 1.30296 so far). The low from February comes in at 1.2976 and this would be the next target. Stay below the 1.3060-63 area and the bears remain in control. Move above and the bears are disappointed.
