Tests (goes below), Friday's low
Remember, the low on Friday for the EURUSD came in the 1st minute after the US employment report. That low was at 1.0701. The low just extended to 1.0697. New low trade for the EURUSD going back to April 23rd. The next targets are the lows from April 21 and 23 at 1.0659-65 respectively.
The trading range for the EURUSD is now up to 66 pips for the day (was 41 pips when I first arrived). The average trading range is 99 pips over the last 22 trading day, So there is room to roam and extend traders. Traders, who are short, are expecting to see further momentum. It needs the support of sellers overwhelming the buyers.
For patient shorts today, they may give corrections to 1.0722-30 as risk defining levels now. This is the 38.2-50% of the move down today. It also is where lows from yesterday and today came in. Stay below, stay short. If new lows are taken out below the 1.0700 level, the retracement levels will adjust lower (just drag your Fibo level lower). I will expect buyers on the first look at 1.0659-65, however.
