Sellers come in against resistance levels
In an earlier post (CLICK HERE), I spoke of the downside momentum in the pair. I also outlined the risk level for shorts between the 38.2-50% of the last leg lower (see 0.7041-49 yellow area in the chart below). The market decline did slow and the consolidation/correction did stall in the "correction zone" area (between the 38.2-50%).
In addition, the price stalled against the 100 bar moving average on the 5 minute chart. So the sellers keep control (just barely). Risk remains against the 50% and the 100 bar moving average. Traders will now be anxious for a break below the day lows at 0.7026 and then 0.70149 before the natural support at the 0.7000 level. The consolidation has slowed the downside momentum and there is work to do, but at least shorts have risk defined and limited.
