EURUSD makes new year lows

Technical Analysis

Author: Greg Michalowski | eurusd

Trades below the August low at 1.1634

It was not a clean break and run, but the EURUSD has moved to a new low for the year after spending a few hours today breaking, then failing, then breaking over a 4 hour period in the European session. The old low was 1.1634. The new low for the year has moved to 1.16395.  The high for the year was up at 1.23488 reached on January 6th.  The range is now up to 709 basis points (which is still narrow for a calendar year for the pair).  The current price is moving back toward the old low at 1.16634 at 1.1656 currently.  

Trades below the August low at 1.1634

Can the sellers keep the momentum going? A move back above the old low level may lead to disappointment from the sellers.  Stay below and there the next key target area would be at the swing area between 1.16016 and 1.16116 which corresponds with lows from November 4, 2020 and September 28 respectively (see daily chart below). Trade below that level and the door opens up for a potential move down toward the 50% midpoint of the range since the March 2020 low (and a swing high going back to March 2020 as well). That level comes in at 1.14918.
 
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