EURUSD extends to a new low after a pause

Technical Analysis

Author: Greg Michalowski | eurusd

Looks toward September lows

The EURUSD has extended to new lows after a pause in the last three or so hours after the sharp move lower.  Coronavirus and risk off flows are taking it's toll on the currency.  

Technically the earlier highs for the day tried to extend above the highs from Friday, but that moved failed.  A few hours later the price was dumping through the 100 and 200 hour MAs converged around 1.1836 area.  The selling intensified and is being restarted with a move now below the low at 1.17749. That level up to 1.17802 will be eyed as close resistance. Other resistance levels now include the 61.8% retracement at 1.17878 followed by the 50% of the recent move at 1.18038.

The next downside targets on the hourly look toward the swing lows from September 9 and September 17. Those levels come in at 1.17518-56 and then the low at 1.17362.  

Taking a broader look at the daily chart, in addition to the levels seen in September from the hourly chart, the price is approaching swing lows going back to August 21 (at 1.17533), August 27 (at 1.17615), and the September 9 low (at 1.17518). A move below that area gives sellers more control.

EURUSD on the hourly
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