Moves away from 1.1100 level
Yesterday I spoke to the 1.1100-09 area (see post here). Those levels were lows from April, May and July. The price moved below those levels at the end of July and early August on the way to the 2019 low at 1.10265 but recovered back to 1.12489.
Yesterday, the price fell back below the area but bounced off a channel trend line at 1.10918 (see chart above). The extension took the price back above the 1.1100-09 area and the broken 61.8% up to a high of 1.1119 before settling the day at 1.1107. The new day would decide the direction.
In the new day today, the Asian session high reached up to retest the 61.8% retracement at 1.11115 and stalled against the level. The price started to rotate lower. In the early European session, the price fell below the low from yestereday and has been wandering lower. The price has extended to 1.10658 at the low so far. The lower trend line cuts across at 1.1055 and moving lower. Again....the low for the year is at 1.10265 if the selling intensifies.
What spoils the bearish party on this Friday?
On the hourly chart, a move back above the low from yesterday at the 1.1091 area would not be a good look for the sellers.
Drilling to th 5 minute chart below, the pair is in a channel with 1.1078 above and 1.1058 below currently (both are moving lower). A move above the topside trend line and then the falling 100 bar MA and 200 bar MAs at 1.1086 and 1.10947 (both are falling) would also spoil the bearish party.
ON the downside watch the lower trend line.
