EURUSD moves back toward the 2018 lows. What next?

1.18218 is the 2018 low..

The price of the EURUSD cracked below the 200 and 100 hour MAs after trading around the MAs for the London morning sessions. That break helped to send the EURUSD lower. The post data has kept the selling going.

The pair is moving toward the lows from earlier in the month at 1.1837 and 1.18218.

Yesterday, the pair rallied away from the 200 hour MA but stalled at the swing highs from May 4th. The dollar fall stalled and the move up was fully retraced by the end of the day. The sellers were taking back control.

Looking at the daily chart, the 1.18166 was a swing low from December 22. The 38.2% at 1.17133 and the swing lows from November and December are still potential targets. The EURUSD has been in a bullish trend since bottoming back in December 2016 at 1.03517.

Some levels to watch for risk now?

• The 1.1876 was the 2010 swing low.
• The 1.1896 was a swing low from May 7th and swing high on May 9th. On May 11th, the price fell below that level but stalled at the 100 hour MA (blue line on the hourly chart). That area should be a pretty tough risk level now for sellers. On a correction, I would expect sellers to think about that level as their risk on new shorts.

Shorts have taken control. The lows from 2018 are the next hurdles. That opens the door for more selling potential that could end in the 1.1713 area.