EURUSD dips to new session lows and into the support target area
Up and down week for the pair...
The EURUSD has had an up and down week of trading.
We just moved moved to a new session low on the day (see hourly chart above) and in the process is working toward support at the 50% of the move up from the September 12 low (ECB day). Also in the area are swing levels in the 1.1013 to 1.10159 area. We currently trade at 1.10204 (the price dipped to the 1.1018 while I have been typing - right ahead of the 50% level).
- Monday saw a sharp fall
- Tuesday saw a sharp rise.
- Wednesday was down
- Thursday was up and down
- Friday has been up and back down
Although the price has seen lots of ups and downs, the technicals have helped define the bias.
At the high today, the pair stalled short of the highs from Thursday/Wednesday/Tuesday, and at a swing area (see blue circles). The fall below the upward sloping trend line and the 100 and 200 hour MAs, did weaken the technical pictures and we are seeing more momentum lower as more buyers turn to sellers (and new sellers reenter on the shift in technical bias). That is just the way it is in an up and down market.
Now with the price testing the the 50% and swing area, traders may stick a buy toe in the water (there should be a little profit taking buying from the shorts at least). A move below the 1.10135 however, should scare the buyers. So be aware.