The squeeze continues in the EURUSD. Tests high from yesterday
The EURUSD has moved toward the high from yestreday at 1.11797, AND the falling 200 hour MA not far from that level at 1.11816. The 50% of the move down from the May 13 high comes in at 1.11847. Safe to say, the pair is running into a cluster of resistance that extends from 1.11797 to 1.1187 (high from Tuesday's trading).
Do sellers lean on the first look? They would be trying to catch a falling knife (or rising knife in a vacuum without gravity). But why not? Especially for those who have run the pair higher today. Risk can be defined and limited.
However, if that area is broken, there could be more momentum as the sellers here cover.
PS If it holds resistance now, there is support below (100 hour MA and trend lines) that should limit the correction (or so I would think).
Key level for potential dip buyers and sellers. The sellers are in firm control of course but cheeky buyers/profit takers may look at the area to stick a "low risk" toe in the water (with stops on a break lower).
Now a new low was made by 3 pips, but it quickly failed. We are at an opposite extreme area now, with the same cautious opportunity.