The EURUSD initially moved higher in Asian trading, peaking at the 1.3079-83 resistance area (38.2% of the move down from Friday, low from July 17 – high reached 1.3084). The decline from the peak has moved to the support trend line at the 1.2997 level. On the daily chart the area is also where lows from March and April (1.2994 -1.3010 – see chart below) and where the price stalled on move higher last week (1.3002 – See post from yesterday) . Profit takers are entering against the level.
The price is corrected modestly in the early NY trade. Traders will be eyeing the 1.3028-31 area now as intraday resistance today. This was the low from yesterday’s trade and is the 38.2% retracement of the move down today (see 5 minute chart below). Stay below this level (stops for some sellers likely) and the sellers remain in control today. Move above, and the 1.3041-46 area becomes the dividing line for bulls and bears (50% of the days range and the close from yesterday).
On the downside, a move below the 1.2994 should see continued selling pressure with the 200 hour MA (green line in the hourly chart above) being the next key target area below. That level comes in at 1.2934 currently (and moving higher). The high from September 12th is also at the level – increasing the levels importance.
