Falls below the correction zone
Continuing the EURUSD progression from prior posts, the EURUSD has fallen below the 38.2-50% of the last leg. This shows the buyers that took the price up from 1.0874 to 1.0944 (70 pips) are less in love with the price at this level. In other words, there are sellers who have entered and the buyers are losing a battle... The market is more balanced. What now?
The buyers are losing a battle to the sellers but does it mean the buying is done? Do the sellers now control? No the market is simply more balanced between buying and selling (all things being equal) at the extreme. The sellers won a battle and pushed the price below the 50%..
Where would buyers come in?
Looking at the chart now, I have pushed the fibo all the way to the bottom. Now want to see the 38.2% hold of the big move up. Also in that area is the prior highs and lows. This was congestion resistance area. It should now be support. My mindset is now more balanced. More up and down. Profits on longs were pared. If looking to get long, the support level is there. but mindset is that the high is in for the day. I probably lose faith in buyers if the price goes below the 100 bar MA (blue line in the chart above).
