EURUSD falls below 50%/swing area

Technical Analysis

Author: Greg Michalowski | eurusd

Price moves to the next swing target area

The EURUSD stalled yesterday at the 200 hour MA and stalled the fall near the 50% retracement.  

Price moves to the next swing target area

Today the price stayed away from the 200 hour MA (green line) and moved lower on overall USD buying (and concerns about EU Covid prospects).  The price action took the price below the 50% retracement at 1.1721 and a swing area between 1.1718-30.

The low for the day reached the 61.8% at 1.16952, and the top of a lower swing area between 1.16836 and 1.1693. The low price reached 1.16916 before bouncing. 

The price has moved back above the 1.17000 level (at 1.1706 currently) .  Traders will be eyeing the 50% and higher swing area for bias clues. Stay below keeps the sellers more in control. Move above and we could see more upside probing.  

On the downside, the 61.8% level acted as support on the first look A move below is needed (along with the break of the 1.16836 level) to keep the bears happy and the trend lower.

Looking at the daily chart, the 1.1695 to 1.17103 is home to swing levels going back to the end of July (see red numbered circles on the chart below).  The low today took a quick peek below that level to a low of 1.16916.  Getting and staying below 1.1695 is another bearish development but from the daily chart perspective. 

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