Gains from Monday's lows are fully reversed
The EURUSD traded to a low of 1.15455 on Monday and raced higher. The high price on Monday stalled near its 100 hour moving average (blue line), failed on a break of that same moving average on Tuesday, but rallied higher yesterday on dollar selling through the FOMC decision. In the process, the price extended back above the 100 and 200 hour moving averages (blue and green lines) and briefly above its 50% midpoint of the move down from last week's high to last week's low at 1.1613. The pair also tested the low of a swing area (see red numbered circles) near 1.1616, but for the the most part found sellers against the midpoint area.
Today, the price reversed back below the aforementioned moving average levels (both the 100- and 200 hour MAs are still moving to the downside) and buyers from yesterdays started to turn to sellers today..
The pair moved below a swing area between 1.1564 and 1.1571 (that is now a close risk area for sellers today) and down to a another swing area between 1.1540 and 1.15455. The swing lows going back to October 6 bottom at 1.15455, 1.1540, 1.15282 and 1.15237. Each will be targets on more selling. A break below the lowest swing low would take the pair to the lowest level since the July 2020.
Close risk now for shorts would be the swing area between 1.1564 and 1.1571. Stay below keeps the intraday sellers in control.
