More trending today after yesterday's choppy session
Yesterday, the EURUSD traded up and down in a relatively narrow 66 pip trading range. The pair closed near its highs for the day.
Today, after a continuation to the upside in the Asian session, sellers leaned against its 100 hour moving average (blue line in the chart above) as risk can be defined and limited. Buyers turned to sellers and the price has been trending lower since then.
The 1st target area was at the 200 hour moving average of 50% retracement near 1.1838. After that was broken, getting through the 61.8% retracement at 1.18076 and the low from yesterday at 1.1801 (call it 1.1800) where the the next targets. That area (up to 1.18116 – a swing low from yesterday) is now risk for sellers. Stay below keeps the sellers firmly in control.
The price has been trading above and below the low from last Friday at 1.17810 over the last 3 hourly bars as traders consolidate the declines. We currently trade below that level I.1775.
The next downside targets would look toward the lows from last week at 1.17399, 1.17207 and 1.17103.
A move back above the 1.1801 – 1.1811 area would be needed to muddy the bearish waters today.