Cracked below trend line at 1.1864 and swing area between 1.18592 and 1.1868

The EURUSD as retraced the gains for the day. The Asian session low reached 1.18498. The low price just reached 1.18507 (just a pip short of that level).

The price action in the Asian session saw a initial dip followed by a run back to the upside into the European session. Traders at the highs leaned against a swing area in the 1.1891 to 1.18961 area. The subsequent moved to the downside seen in the London morning session has now taken the price below an upward sloping trendline on the hourly chart at 1.1864 and also below another swing area between 1.1859 and 1.1868.

Cracked below trend line at 1.1864 and swing area between 1.18592 and 1.1868

Traders are looking for more downside would likely lean against the 1.1868 level as a risk defining level. The next targets on the downside would include the 100 hour moving average at 1.18414 followed by the 200 hour moving average at 1.18337. Below that and traders will be looking toward the Monday low price at 1.18135.

A move back above the 1.1868 level would spoil the run back to the downside but is certainly possible given the up and down price action and generally a upward sloping movement seen since last week's low. Nevertheless the breaking of the trend line is a tilt more to the downside from a technical perspective.

PS. Overall the range in the euro is only 41 pips vs. the 22 day average (about a month of trading) of 78 pips. As a result there is room to roam in one direction or the other currently the sellers are trying to exert more control of course.