OK...the high reached 1.0708
The EURUSD extended the narrow trading range and pushed higher. Where did it go? To test the 1.0706 level. That level is the 38.2% of the move down from the November Election day. It is also becoming a barometer for bullish above, bearish below.
Yesterday the high stalled against the level on the correction back higher. ON Monday and Friday, it was support. Today it is resistance on the first test.
The price has rotated back lower (the high traded to 1.0708 - just above the level). The low just reached 1.06927.
Traders are trading and that level remains a key level to get above IF the price is to go higher.
On the downside, the 1.0656 was swing lows from Jan 26. Jan 27 and yesterday. Today, that level was broken BUT momentum faded fairly quickly (we did not get close to the 1.0619 low from Jan 30). Sellers reversed.
When "traders are trading" back and forth, they pick out levels and lean at resistance on rallies and lean at support on sell offs. If there is a break (like today at the lows), if the break does not stick, traders are not afraid to reverse and go the other way. Traders don't care all that much about direction when they are trading back and forth. They just care about the risk.
The 1.0706 is a risk defining level. The 1.0656 is a risk defining level