I will get rid of the colors next week…(maybe). It does outline the bias and risk levels as the market consolidates.
The EURUSD is back in the Red Zone. Can the selling continue and move away from the consolidation area?
Anyway, what is the picture and colors telling me.
The EURUSD could not get above the 100 and 200 hour MAs (see post from yesterday HERE). The sellers took control and pushed the price lower – through the yellow area (which has been a support area in this consolidation phase), and is back into the Red Zone. The low from yesterday fell below the September 9th low and the current price is now below that level too. So the sellers are trying to push further. Of course, the low from yesterday is the next target. This is also channel trend line support on the weekly chart (see below). A close below this level should be more bearish for the pair going into next week.
Further down is the 61.8 % of the move up from the 2012 low to the 2104 high at the 1.27865.
Needless to say, the price will move away from this area at some point. Yesterday and again today, the bias is more to the downside. I like that way, but I know it needs the markets conviction – not mine. I cannot move it a pip (nor can most of you). The great news is the risk is even more clearly defined. So not a worry.
The EURUSD has channel trend line at 1.2828 and then 1.27865
