The line in the sand was broken in the EURUSD (see PRIOR POST and HERE TOO) at the 1.2655-1.2660. The next target at 1.2696 was approached but not reached. The price has rotated lower and has moved back below the break out levels (at 100 hour MA and 1.2660 level).

Was the break higher, just a shake out? We will know if what was resistance now stays as resistance.

Look for the 100 hour MA (at 1.2651 now – blue line in the chart below) and the 1.2660 level (low from November 2012) to attract sellers again. Stay below and the bears remain in control. Move above and step aside. Something is not right with the market and you may want to cool your trading for the day.

EURUSD is back below the 100 hour MA at 1.2651 and Nov 2012 low at 1.2660 (not shown).

EURUSD is back below the 100 hour MA at 1.2651 and Nov 2012 low at 1.2660 (not shown).

Today there is a floor low on the hourly chart at the 1.2613. This is the next target to get below. If this level is breached there should be more momentum to the downside with traders focused on the lows from yesterday (at 1.2583). and the week (at 1.2570)