Price cracked below the December 14 and December 15 lows
The EURUSD has cracked to new session low and in the process has taken the price to the lowest level since December 11 and below lows from December 14, December 15 and December 16 between 1.2115 and 1.2124. The low price reached 1.21102. The pair has moved down 45 pips over the last few hours of trading. In the process, the range for the day has been extended to 61 pips. The average of the last 22 trading days is 78 pips. So there is room to roam.
On more weakness, the next targets look toward the swing low from December 11 at 1.21023. Below that, a move below 1.20948 would open the downside more.
Understand that the pair is in the middle of the consolidation range from a December chop. As a result, trading can get caught "in the web" of that price action again.
What would hurt the technical view in the short term would be a move back above the lows from Monday, Tuesday and earlier today between 1.21315 and 1.21364. Stay below, keeps the sellers more in control. Move above and the sellers into the new lows would be disappointed.
