Overhead resistance looms at 200 hour MA and 50% retracement level
The EURUSD traded above and below the 1.1876 level in the Asian session. That level was the swing low from 2010. The 50% of the move up from the August 17th low at 1.1865 was the lower support.
More recently, reports that ECB officials were concerned about the level of the EURUSD sent the pair below that 50% level as well as a trend line and 200 hour MA (currently at 1.18616). That area will now be eyed as a key resistance area on corrections higher.
On the downside, the pair has found support buyers in the 1.1823-27 area. That area was a ceiling during last weeks trading. It is now a floor this week. The low price reached 1.18225. The 61.8% at 1.1817 and the 100 bar MA on the 4-hour chart at 1.18096 are other support targets to get below.
So, the market has carved out a meaningful resistance level above at the 200 hour MA, 50% retracement and broken trend line, as well as a meaningful support level below with the ceiling now a floor. Sellers have been taking control this week after the spike high on Tuesday was rejected.
Taking a broader view of the daily chart, if the selling is to continue, the 1.1877 level is a lower trend line. Keep in mind for down the road. It is a target to get below.
PS. there is room to roam through that 1.1877 level if the bears can keep the technical bias. PSS. The high today reached 1.19056 which was just below the earlier August high at 1.1910.
