The 1.20027 to 1.2010 was swing highs on the daily chart in Sept and end of November 2020 before moving higher
The EURUSD has been able to break below support below a key swing area between 1.20027 and 1.2010. Those levels corresponded with a swing hi from September 1 (red numbered circles 1) and November 30 (red numbered circles 2). Yesterday and on Tuesday, the price tested that area, but reversed higher.
Today the break below the levels as increase the bearish bias. the next target comes in at the 50% of the move up from the November low at 1.19752. Below that is a swing area going back to August (see blue numbered circles) near 1.1965. Finally the 100 day moving average at 1.19569 is another key level for both buyers and sellers. The last time the price traded below the 100 day moving average was back in November. At that time, the pair traded above and below the 100 day moving average for 4 days before reversing higher.
Looking at the hourly chart, in the Asian session the price extended above a topside trend line, only to run out of upside momentum before reaching the swing highs from yesterday and a intraday swing high on Tuesday near 1.2050. The inability to get above that level, was an issue and buyers turned to sellers. Getting below the aforementioned swing area between 1.20027 and 1.2010.
That swing area is now a key resistance area. Stay below keeps the sellers and the move toward the key targets on the daily chart.
