Tests next target at 1.10872
The EURUSD has stretched the 18 pip range to 29 pips in the NY session by virtue of an extension lower. In the process, the pair fell below the 1.1100 level which was near the 100 and 200 hour MAs. Breaking below, is helping the sellers and scaring the dip buyers at the same time. The bias has tilted lower.
The pair is down testing a level that sits near the middle of the trading range that has confined "most" of the trading from August 15 to last Friday when the pair broke higher. It is also home to a number of swing levels during that time span (see red numbered circles). That level comes in at 1.10872.
A move below that 1.10872 level, willl have traders "hoping for/targeting for" the 1.1063-658 area (see lower yellow area). What would spoil the sellers fun now, would be a move back above the 1.1100 level. Boo....
Getting the EURUSD to move is a tough proposition. The sharp move on Friday on the back of the US/China tariff escalation and dollar selling, found technical sellers at the 1.11618-67 area (swing lows from August 12 and August 14) on Monday. that was enough to tilt the market into balance and eventually lower (in yesterdays trading).
Today's price action above the 100 and 200 hour MAs initially was encouraging but that support eventually gave way and now it is the sellers turn to try and impress (and take control). Stay below 1.1100 now.
