Speech comments were misjudged. Meant to be more balanced.
The EURUSD has reacted lower to the comment from the ECB that the market misjudged the comments from ECBs Draghi in his speech from Portugal. According to sources, Draghi intended to strike a more balanced in his Simtra speech.
The price moved to new session lows on the move (to 1.1290). Looking at the daily chart above, that low tested the support area in the 1.1282-1.1300 area. That area is defined by a number of swing levels going back to September 2016 (see red circles). Remember, as well, that 1.1300 post election day high which was broken yesterday on the news. That area (between 1.1282 and 1.1300) was a key resistance (ceiling) area until broken yesterday. It is now a key support (floor). Stay above keeps the buyers a bit more in control (it also defines risk for longs/dip buyers).
Looking at the hourly chart, the 50% of the move up from yesterday's low (base before the trend move higher), comes in at 1.12813. That increases the bottom of the support area's importance. Technically, stay above and the buyers still hold some of the bullish bias. Move below and the break higher failed...I would expect buyers to turn to sellers.
Drilling to the intraday chart, what did the fall do technically.
Yesterday, the price closed at 1.13375. The high correction price off the low reached 1.13398 so far. The price is now below the 100 and 200 bar MAs at 1.13608 and 1.13516. The 50% of the move lower comes in at 1.13354. A move back into the black (and above the 50%) will now be eyed intraday. If it can get above, the holding of the floor at 1.1282-1.1300 starts to look better. A battle between sellers at the at 1.1337 and buyers against the floor, is on.
