- The EURUSD has moved lower today, but the move has not been without some choppy corrective moves.
- Twice the price corrected quickly and sharply to the upside suggesting the sellers are not strongly connected to their posiitons. However,
- Traders used the 100 bar MA on the 5 minute intraday chart to contain the moves higher. This keeps the bears in charge. (see blue line in the chart above).
- The price has channel trendline support at the 1.3054 currently (see chart below). This will be a support target for the pair.
On the daily chart below,
- The midpoint of the 2012 range comes in at the 1.3054 level. This, coupled with the support from the 5 minute chart, makes this level an important support level today.
- Below that level is trendline support at 1.3038 (see chart below). This trendline was broken on Monday but the momentum could not be sustained and the price rebounded quickly,
- This area between 13038-54 should provide some support buying for the EURUSD with stops a break below.
I would like to see a momentum move gather steam and with the days range at 83 pips or so currently, there is room for additional momentum. However, the corrective moves have me a bit more cautious. Having said that buying against support (or partial profit taking) with reinitiating stops on breaks below makes the most sense until I can trust the market conviction more.
