The floor 1.1816-21 was busted and the price ran.. The 1.1713-17 is the next major target now.
The floor at the 1.1816-21 area was broken in trading today, and the price scooted lower. See post from yesterday here. The fragmentation of Europe is weighing.
The pair is trading to new lows at 1.1762. The next major target comes in at 1.17133. That level - on the daily chart above - is the 38.2% of the move up from the December 2016 high. It is also near the swing low from December 12 which bottomed at 1.1717.
Drilling to the 5-minute chart below, the correction off yesterday's low stalled right ahead of the 1.1876 area. At that level was the 50% of the trend move lower, the 100 bar MA and the 1.1876 was the swing low from 2010.
In trading today, the 100 and 200 bar MAs were broken but the corrections could not get to the 1.1876 level. The selling trend restarted and the pair moved back below the 100 and 200 bar MA on the 5-minute chart (see blue and green lines in chart below).
The price action has not had much of a correction since cracking below the floor at the 1.1816-21 area. The risk for shorts is a move above the day's 38.2-50% at 1.1796-1.18075.
When the market price action breaks and trends like it is doing, the 38.2-50% often becomes a corrective area that sellers reenter on the corrections. Stay below keeps the sellers in control. Move above and the waters get muddy.
----------------------------------------------
