In an earlier post, I outlined the 50% retracement and 200 hour moving average at the 1.12577 level as a KEY support level for the EURUSD.
That level did hold support, and the price has waffled between it and the 1.1279 area (broken 38.2% retracement) over the last few hours. We currently trade at 1.1269.
Sellers are keeping in control below the 1.1279 level intraday. However, the price will need to crack below the aforementioned support at the 1.12577 level.
Move below that level, and the 100 hour moving average at 1.12474, opens up the door for further downside momentum. Recall that last week the price tested the 100 hour moving average on 2 separate occasions and found sellers against that level. In trading yesterday the correction lower (on the Navarro comments). Found early buyers against that moving average level.
If the price can get back above the broken 38.2% retracement with some enthusiasm, we could see the sellers turned back to buyers on the selling disappointment.