100 and 200 hour MA and 50% slowed the move lower. Now being broken.
The EURUSD tumbled lower after Greece "deal". Of course there is a lot of other stuff that needs to happen including votes in Greece and other EU nations with regard to the deal. For further discussion just scroll through the story as it happened in the eyes of the Forexlive staff (CLICK HERE for the European review).
Technically, the pairs decline stalled, stopped, was slowed at a cluster of support including the 100 and 200 hour MAs and the 50% of the move up last weeks trading range. Those specific levels come in at:
100 hour MA = 1.1060 currently
200 hour MA = 1.1066 currently
50% retracement = 1.1065
The lows - until the last few minutes of trading - have dipped below this cluster of support on three separate hourly bars - the lowest being 1.1053 as the price was tumbling. The last two successive lows reached 1.1057. As I type the pair is now breaking below that key cluster of support. Traders will now expect the price to move away from this area and head toward the next target. STAY BELOW 1.1066 and the sellers remain in control.
The next key support will be the ubiquitous 100 day MA at the 1.1022 level. Last week 4 of 5 days traded above and below that key MA (Friday the price low was able to stay above) as traders stood to the sidelines ahead of Greece. Now after(?) Greece, will the price move below this key MA and trend lower still? That is what will be eyed if the bears are to take more from the market.
