When I looked at the EURUSD earlier, “Is there another move before the weekend?” , the range was narrow at 56 pips, and there were some other clues that implied that a downside extension might be in order (see the post). The price was around 1.2788. The next target was 1.2750 where the midpoint of the weeks trading range was found.
EURUSD extends and moves toward the next target at the 100 hour MA.
The range has indeed been extended lower. The 1.2750 level was broken in the last 30 minutes and the next target at the 100 hour MA (blue line in the chart above) is not far away at the 1.2736 level now. In the move, the range for the day has been extended to 93 pips from the low 56 pips. It is now within 10 pips of the 103 average over the last 22 trading days (about a month). The day may not be average, but it is not “well below average:.
Looking at the 5 minute chart below, the price correction off of the first low, extended up to the low from the day prior to the break. That was a nice level to find sellers. So, the sellers are more in control from what I see from the price action. Sellers seemed happy to lean against the prior low which is always a good bearish sign.
So what now?
Although the move lower is showing more bearishness, I would still expect buyers against the 100 hour MA (blue line), but if traders like the weekend risk and the potential for further downside, they can put the stop above the 1.2780 or even above the now declining 100 and 200 bar MA on the 5 minute chart.
Other levels to consider are the lows from 2013 which came in at 1.2746 and 1.2757. A move below these levels should open up the downside for further momentum lower.
EURUSD 5 minute chart.
