The 5 minute chart did a good job of showing the way today
The EURUSD moved stepped higher today and the pattern revolved around finding support near the 100 bar moving average on the 5 minutes chart and a lower trendline.
Adding a parallel channel trendline to the tops, the last push to the upside did find resistance against that topside channel trendline.
The subsequent move lower initially found support near the lower trend line. After a brief rally, the trendline was broken at 1.1833. The price ultimately move down to a new session low of 1.18123. That took out the London low price (1.18149) as the traders in Europe and London exit for the day. We are currently trading just above the low at 1.18185. The price is also moved below its 200 bar moving average on the same chart at 1.18235.
The pair is still higher on the day - the price low was in the 1st hour so of trading and against its 100 hour moving average - however the bullish bias has lost some of its mojo on the holding of topside resistance, and breaking of the support levels.
Having said that, traders may look intraday at the 1.1814 to 1.18164 area for a pause area. If it holds we could see a rotation back higher (and retest of the 100 bar MA/underside of the broken trend line). If, however, that area is broken, the pair can head back down toward the 200 hour moving average 1.17958.
