Trend line and old swing low tested
The EURUSD extended further toward the 1.1876-78 area where trend line support on the daily and the 1.1876 swing low from 2010 cut across. The low reached 1.1879. Good enough? I think so. (see prior post outlining the level).
Having said that, the 100 bar MA on the 4-hour chart is now resistance. A move above is needed to give the dip buyers against the dual support area some added confidence. Failing to do so could easily see the shorts reentering and taking another stab at the 1.1876 level.
Target reached...yes, but now we see how good is the bounce.