More bearish work to be done...
The EURUSD waffled above and below the 1.1976 in the early part of the NY session, but has started to work lower. The break and momentum move away could be the start of a further break. The range for the month was extended.
That is the good news for the break sellers. The not so good news is the low from September at 1.1837 was broken but only by 6 pips (to 1.1831). The pair stalled in an area between 1.1822 to 1.1837 (see yellow area in the chart above). There is work to be done by the sellers if the move lower is to find more downward selling..
Nevertheless, with the move lower, the sellers now know the 200 hour MA and the 1.1876 level will now be risk. Stay below, and sellers are still in control. We could expect a continuation of the move lower with 1.1719 level a target (38.2% of the move up from the June 20 low. The 200 week MA also comes in at that area at 1.17184 and a swing high from 2015 comes in at 1.1711 (see weekly chart below).
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If you did not see my weekend video on the EURUSD, click HERE.
