The rebound off the low stalled near a resistance swing target
The EURUSD moved to a new cycle low April 5, 2020 earlier today. In the process, a lower trendline connecting lows from July 7, July 13, and July 19 was broken. However momentum could not be sustained and the price rebounded.
In a earlier post, I commented:
What would give the dip buyers some added confidence now?
Get above the low from last week at 1.17708 followed by a move above the 1.17809 low going back to July 7.
Well, the price did extend above the 1.17708 level, but fell just short of the next target at 1.17809. The price moved back to the downside.
The last three hourly bars have all stalled right around the earlier low at 1.1755 - despite the trendline break. There is a reluctance to go lower, at least at the moment.
The second verse is the same as the first. As such, the dip buyers want to see the price move above 1.17708 and then the 1.17809 level.
Get above those levels and the swing high for the day near 1.18019 will be targeted followed by the now falling 100 hour moving average at 1.18066. Ultimately, that 100 hour moving average would need to be broken along with the 200 hour moving average at 1.18224 to give the buyers more confidence. Recall from yesterday, the high price stalled just below the 200 hour moving average - that The sellers in play and has helped lead to the choppy run lower.