Forex technical analysis: EURUSD stumbles lower
Narrow trading range for the day
The EURUSD is trading in a narrow 45 pip trading range. The price is lower and trading near the low for the day. However, there is plenty of ups and downs.
Technically, the pair remains in a downward channel on the hourly chart. Yesterday, there was a dip below a lower trend line, that failed. That trend line cuts across below at 1.2290 (and moving lower - see chart above). Ahead of that is an area that was a ceiling form Feb 8 to Feb 12 at 1.2294-97. On Feb 14th, there was a run lower on the CPI/retail sales data release, but quickly rebounded.
Look for support against the aforementioned levels with stops on a break. What we have to be careful about is the range is still very narrow. So there is room to roam and we are nearer the lows. So don't be too aggressive.
ON the topside, the 1.23385 (61.8%) will be eyed as a potential ceiling.