The EURUSD has kept the pressure on the pair so far and moved to a new day lows. The next target at the week low has been reached at the 1.21746. In fact the price low (at least at FXDD) came in precisely at that level. With the price action seen this week, I am not surprised to see some profit taking bids at the level. Traders still are cautious of a sustained move with the up and down action today, and the levels (steps) are pretty clear for traders as well.
However, it should be noted that the corrections higher off lows have so far been contained. Fearful traders (those who fear the quick reversal) might be looking at the 1.21887 (low from July 17th) as close resistance. Comfortable shorts from above, should still be eyeing the 1.22117-1.22159 as the level that should not be breached if the price is to continue lower.
Target steps below remain at the 2 week low at 1.21619, the reported barrier option level at 1.2150 and the 50% of the move up from the 2000 low to the 2008 high at 1.2131. Steps.
