Targets the 1.0808 retracement.
The EURUSD has printed fresh session lows at 1.0818 but is bouncing higher and trades 1.0834. Keep an eye on 1.0839. This is the midpoint of the NY session and also the Asia-Pacific low. The move lower started when the price could not move above the 200 and 100 hour MAs (blue and green line on the hourly chart below). HMMM I just realized, the low occurred at the 4 PM London fixing. May be another forced move lower at the fixing witching hour.
If the buying dries up on this correction and the downside probe continues, the next target comes in at 1.08088 which is the 61.8% of the move up from the Jan 5 low. There is other support against the 1.0800 level and then 1.0788 (Corrective low after ECB decision back in early December). Last week, the price fell below this floor area but could not sustain downside momentum.
On a move higher, the 100 and 200 hour MAs remain as resistance at 1.0854 (blue and green lines in the chart below).
