Moves through support with more momentum today
Yesterday, the EURUSD fell sharply after peaking near the 100 and 200 hour MAs (blue and green lines in the chart below) but found support buyers after the break of the floor in the 1.0788-1.0801 failed to ignite more momentum selling. The subsequent correction from yesterday's low stalled before topside resistance, and the fall resumed. The selling today is being helped by weaker CPI data out of the EU today with the headline and core both coming in lower than expectations. That is not going the right way for the ECB.
Technically, the fall back below the 1.0788 level today HAS found more momentum selling and the pair now looks toward the 1.0725 retracement level (61.8%) and below that a prior ceiling/floor area at the 1.0883 1.0683-92 area (goes back to November 2015).
Looking at the 5- minute chart, the pairs fall today has been steady with little in the way of corrections. The low from yesterday at the 1.0780 level comes between the 38.2-50% of the trend move lower today (between 1.0775-1.0787). The 100 bar MA on the 5-minute (blue line) is at 1.0787. The low floor off the hourly chart above is at 1.0788 as well. So that is risk area for shorts. Rallies toward that area, should find new sellers today who may have missed the selling opportunities from earlier today.
Looking quickly at the daily chart, the 1.0788 lows from the hourly chart are supported by other swing lows going back to May. The price for the pair is trading below this floor area. If the break is for real, it is time the shorts show that support.
