EURUSD now tests lower trend line at 1.1125.

Technical Analysis

Author: Greg Michalowski | eurusd

The low reached 1.1124

The EURUSD has retraced the move higher from the 5 PM ET close from yesterday. That low was at 1.11246. The low just reached 1.11238. Lap completed.  Also tested at the low is a tren line connecting the Wednesday and Thursday low on the hourly chart.

The EURUSD has tested a lower trendline and bounced but remains below its 200 day moving average   
The EURUSD moved above the 200 day MA on the UK vote news, but started to break down with the GBPUSD as well. The price tried to stall the fall around the 200 day MA (after a brief dip) but in the current bar, fell back below and this time gathered more momentum.  

Failing above the 200 day MA was a big deal.  It will remain a big deal going forward. 

Taking a broader look at the daily chart, the last time the price trade above the 200 day moving average was back at the end of June. The price at that time moved above that moving average for 7 days. However, on July 1, the price fell below that level and had not been above it until today.   Going back before June, the last time the price was above the 200 day moving average was back in May 2018.  

Hence the importance of the 200 day moving average.

The EURUSD has only traded above its 200 day moving average for 8 days since May 2018

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