The EURUSD corrected higher last week
The EURUSD corrected higher last week reversing more than half of the most recent move to the downside from the July 30 high. The moved to the low on August 20 took the price of the pair to a new 2021 low (see daily chart below) taking out the low from the end of March at 1.17035 and the low from earlier August at 1.17053. The new low price for the year reached 1.16634.
Drilling down to the hourly chart, the price last week moved and stayed above its 100 hour moving average on Monday. On Tuesday, it moved back above its 200 hour moving average (green line in the chart below). The price did try to move back below the 200 hour moving average on Tuesday and Wednesday but the breaks were short-lived, and reversed higher in choppy trading. On Friday, the euro moved higher on the back of the more dovish Fed chair at Jackson Hole.
Today were seeing one of the up and down choppy action. The range for the day's only 22 pips. The average is 48 pips over the last month of trading. Technically, the price stayed above the 50% midpoint of the move down from the July 30 high. That level comes in at 1.17857. The low in the first hour of trading reached about 1.1789 before rotating back to the upside.
The price did move above the 1.1800 level to an intraday high of 1.18074, but has rotated back to the downside and trades right around the natural resistance at 1.1800 to start the North American session. Get above that level and traders will target the 61.8% retracement of the move down from the July 30 high at 1.18146. Above that and traders will look toward 1.1830.