The EURUSD tests key support area as selling pressure continues in early NY trade.

The EURUSD is between the 100 and 200 hour MA in early NY trade (1.3139 and 1.3126 respectively.

• The price is testing the 200 hour MA (chart above) with the 100 day MA not far behind at the 1.3118 level (see chart below).
• Adding to the support is the 1.3112 which is trendline support (see hourly chart above).

Lots of support in this area. Risk defined and limited should give sellers a reason to take some profits.

Looking at the 5 minute intraday chart, the leg down in the London session corrected 38.2% and started heading back lower in early NY trade. This suggests that although there is key support, the sellers remain in control and dip buyers are open for further liquidation pressure on the break of the key support outlined above (i.e. look for stops).

On the topside, a move above the 1.3139 level and the 1.3157 level (where the 100 bar MA is located and the last corrective high) is needed for the bulls to wrestle back some control today (see 5 minute chart).