...buyers finding the upside rebound tough
The EURUSD rallied in the Asian session (modestly) but found sellers against the 61.8% of the range since French election #1 at 1.08969 (see chart below).
The sell off took the price to the targeted support area defined by the 100 bar MA on the 4-hour chart at 1.08617 (see post from yesterday) and other swing levels that defined a floor (between 1.0851-56 - yellow area in the chart above). Buyers leaned against the area (no hourly closes below the MA level) and the price has rebounded modestly through the Draghi comments.
Although a key support area has held, the buyers are finding the going tough. The price has stalled against the 1.08825 area. Their have been a number of swing levels near this level going back to April 28th (blue circles). If the buyers from below, are to get more satisfaction, that level, followed by the 61.8% at 1.08969 need to be breached.
There has been sellers against topside resistance.
There has been buyers against downside support.
There is a middle level (at 1.0882) that has divided each.
I would say that with that price action (in relation to the technical levels) have traders reacting at risk defining levels, not expecting a rose garden as far as oversized gains, but they are probably preparing for a break. Right now however, the trading is slow, patient and following the levels.
