Traders…and it may just be short term traders…have pushed the price back below intraday support levels and look to extend below the low for the day at 1.2246 (hoping for an extension that is). The low from yesterday (and the year) looms below at 1.2234.
Can the sellers stay in control? So far the Pavlovian reaction is buyers against the low. I suspect there should be resistance at the 1.2265 now where 200 bar MA on the 5 minute and old trend line sits (see chart). Shorts – looking for the break and extension – should be looking at this level for confirmation of a willingness by sellers to keep the pressure on. A move above, would likely signal those sellers just don’t have the strength to overwhelm the buyers.
Non trends eventually trend. The market is non trending.
