...the buyers nervous. Steps lower although momentum slows a bit
The EURUSD has been able to keep the sellers happy as the trend characterstics continue. However, there is some slowing of the move.
The below chart is a one-minute chart as it shows the progressive steps which make up a trend-like move. It also shows the slowing of the trend.
Having said that, there are a progression of steps lower which keeps the sellers in control and the dip buyers worried (fearful).
- The first leg lower, fell hard and corrected to the 38.2% retracement. Sellers entered and started the next leg lower.
- The second leg lower, fell hard again (from 1.1265 to 1.11758) and corrected again to the 38.2% before falling once again. Sellers in control. Buyers not feeling good.
- The 3rd leg lower is a bit more drawn out. This move went from 1.1212 to 1.1153. The correction off this low stalled at the 50% of that leg (the 50% came in at 1.11828. The high correction printed 1.11845). The correction process has been slower, more drawn out. The buyers and sellers are more balanced, but overall, the sellers remain in control. The buyers are hoping.
Now, there are some clues that buyers are trying to put a temporary bottom in. There are now 4 separate lows at the day lows. And that can get traders attention (both shorts and dip buyers). The next major target at the 1.1124 level remains about 30 pips away. The 1.1124 is the 200 day MA.
So although the trend remains the friend of the shorts, they can buy against the low with a stop below. If there is a break, the 200 should be tested. IF the level holds, there could be another look at the 100 day MA which comes in at the 1.1175 level today.
