Swing low tested earlier
The EURUSD tested a lower swing area earlier in the day at the 1.07556-633 area. Sellers could not push the price to and through the area. So sellers turned buyers and the price moved higher.
Now the price has moved up to a upper swing area between 1.0832 and 1.0840. The price I just moved to 1.0833. Will the sellers now enter to cap the rally?
Risk can be defined and limited against the area. Sellers/profit takers could lean.
However, if there is a break above, I would expect sellers to shift back to buying, and a rotation toward the 38.2% and the falling 100 and 200 hour moving averages. They come in at 1.0862 – 699 area.
Decision time for the market.
