Completes the lap
The EURUSD bottomed at 1.0874 last Thursday at 1.0874. At the time, the pair cracked a trend line, but that break quickly failed. The pair peaked in the first few minutes of trading this week (yesterday) at 1.1021. It has been downhill (i..e. lower) since then.
We just retested that low at 1.0874, completing the lap to the upside. the trend line that failed on Thursday, did a better job of holding resistance today (at 1.0904). Buyers have stuck a little toe in the water against the swing low level. Watch 1.0882....I know it is close but if the correction cannot get above that level and stay above, the low is in jeopardy.
If we go get and stay above the 1.0882 level, the broken levels above are the resistance levels to eye. They include the 1.08969 level (the 61.8% of the move up from the post 1st round French election low) and then the broken trend line at 1.0904 (so the range around 1.0900).
For shorts, if the buyers cannot take more control, the 1.0851-56 area and the 100 bar MA on the 4-hour chart at 1.0847 (and moving higher), becomes the next key support target.
The 200 day MA comes in at 1.0832. That MA was broken on the Monday following the 1st round of the French elections, and based off that MA before moving higher. It helps to define the low of the range since the gap move higher after the election weekend surge.
We tested support and held on the first low. So buyers are fishing. But there are some other hurdles to get back above before they snag a fish. Watch 1.0896-1.0904 for the fish.
