EURUSD gap nearly filled

Technical Analysis

Author: Greg Michalowski | eurusd

The low today just took out the low from yesterday but only by less than a pip

The EURUSD did moved to a new low for the year at 1.07839. That took the price below the low from yesterday 1.07847, but only by less than a pip.  The price rebounded but remains in a narrow 24 pip trading range for the day and comfortably below its 100 hour moving average 1.08278. The price has not traded above its 100 hour moving average since February 4. If the buyers are to take back more control from the sellers a move above that moving average would be eyed.

The low today just took out the low from yesterday but only by less than a pip
Taking a broader look at the weekly chart, the pair continues to find support near the gap from May 2017 between 1.07768 and 1.0820 (it was the weekend of the French election for your guide).  

The low today at 1.07839 got within 7.1 pips of filling that gap, but fell short of completely filling the gap. If broken, a lower trend line connecting the August 2018 low and the September 2019 low (see red numbered circles would target near the 1.0731 level.

EURUSD on the weekly chart is testing the gap from May 2017
Overall the technical picture still shows the sellers more in control. 

Having said that,  there is a support hurdle to get to and through for more downside potential.  That may be tempting for the buyers. 

The price of the euro has been down for 10 of the last 12 trading days (the 2 updates were very modest gains). Yesterday, the price closed at 1.0791. We currently trade at that level. A move back above into positive territory for the day, may solicit traders who are looking for a glimmer of positive/bullish clues to buy a dip.  However, I would expect the bullish leash to be pretty short. That is, if the price cannot extend back above the 1.0800 level (and stay above), and the 1.0791 level is rebroken, the dip buyers may switch to sellers once again. 

Key area for intraday traders.  
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