EURUSD extended the range lower, but China news threatens the downside break/bias

Technical Analysis

Author: Greg Michalowski | eurusd

The low today got closer to the 2019 low not close enough.

The EURUSD fell to the lowest level since August 1 at 1.10263. The low reached 1.1051 which was the lowest level for the week, and extended the narrow range for the week to 61 pips (from 49). Nevertheless, the low is still a good ways short of the low for the year.  This week, the pair did a good job of stalling near the swing lows from April, May and July (see red circles) in the 1.1100-09 area. The high for the week could only get up to 1.1113.  

The low today got closer to the 2019 low not close enough.
Drilling down to the hourly chart, the price has now moved back above the swing lows from the first 4 days of the week in the 1.1063 to 1.10658 range.  That area is now the close risk area for buyers looking for a bigger rebound.  

IF the pair moves higher from here, the 100 hour MA comes back in play (at 1.10856).

EURUSD on the hourly
Driling further to the 5 minute chart below, the corrective high in the early European session stally at the 1.10735 level.  The recent highs reached just short of that level.  A break above would be more bullish for the pair and look toward that 100 hour MA above. 
  
EURUSD on the 5 minute chart

ForexLive
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose