Corrective move stalled at broken trend level
The EURUSD bottomed earlier against the low from last week at 1.0874. The correction took the price to the high end of the correction range outlined in the earlier post today (against the underside of the broken trend line - see post here). That trend line did attract sellers and we headed back lower. Sellers remain in control.
The pair has now cracked to new lows - taking out the double bottom at the 1.0873-74 area, but activity is not picking up. Nevertheless, sellers remain in control but the price needs to stay below the 1.0882 -83 area (another swing low area). Failure to keep the sellers fully engaged and happy could see another test of the 1.0900 area (and broken trend line).
The next key target below remains at the 1.0851-56 area. That is where there are a number of swing lows going back to April 25th. The 100 bar MA on the 4-hour chart is also at that area at 1.08493 (and moving higher). Below that the 200 day MA at 1.0832 is key. The price has not closed below that MA since the gap higher on the French round 1 election results.
