Corrective move in NY session stalls ahead of broken levels (Bearish)

In an earlier post, I outlined the bearish case for the EURUSD ("Don't like the EURUSD? There are a number of technical reasons to sell."). Risk was a move back above the 100 hour MA for shorts (blue line).

The price of EURUSD did correct higher. It stalled just ahead of the 100 hour MA at 1.23496 (currently). The high reached 1.23473). Sellers entered and have now pushed the price to new session lows.

What next?

  • The swing from Tuesday at 1.23138,
  • The 50% retracement at 1.22995 (call it 1.2300) and
  • The swing low from Monday at 1.2290

The employment day's low bottomed at 1.22723.

If you liked the downside, the sellers in the EURUSD below the 100 hour MA have kept the bearish fire burning.

The closest risk might now be the 38.2% at 1.2334. The 100 hour MA is a higher risk for shorts looking for more selling momentum.