The market tested the 100 hour MA, and that has now given way. The market was looking for the QE hint. It did not get enough. So the dollar bears are covering and the technicals are supporting the move.
Looking at the trend leg down, the 100 hour MA comes in at 1.2434. The 38.2% of the last leg down down comes in at 1.23472. If the bears are aggressive, the correction should find sellers between these levels. The range for the day is 92 pips so far. The 20 day average is 114 pips. So there is more room for new lows. I will be eyeing the 1.2247 for clues. A move above the 1.2254 would muddy the water a bit for the trend.
