The 1.0887 to 1.0896 area is home to a number of technical levels.
The EURUSD is trading at new session lows and in the process testing a cluster of support defined by:
- swing levels between 1.0887 and 1.0896
- 50% retracement of the move up from the March 23 low at 1.08906
- trend line at 1.0900 currently.
As I type, the lower end of that ranges being tested at 1.0887. A break below would open up the door for further downside.
On more downside momentum, the swing high from March 25 comes in at around the 108.50 area. The 61.8% retracement of the same move higher comes in at 1.0830.
It will take a move back above the 1.0900.1.0902 area to give the buyers/longs some comfort that the downside momentum has stalled. Yesterday's low came in at 1.0902.
UPDATE: The price is breaking through the cluster of support as I type and reaching to new session lows at 1.0878. Sellers in firm control, with risk remaining at 1.0900-02 area now.
