The EURUSD down for the 3rd day

Technical Analysis

Author: Greg Michalowski | forex

The EURUSD double top last Friday has led to three days to the downside this week

The EURUSD peak on Friday at 1.19084. That was just above the swing high going back to July 30 at 1.19081. The double top gave the trend buyers some cause for pause. Since at high, the price has been lower on Monday Tuesday and now Wednesday. Prior to the 3 day decline, the price moved up 10 of 11 trading days (from August 20 low). 

The EURUSD double top last Friday has led to three days to the downside this week

Yesterday, the price fell back below its 100 hour moving average for the first time since August 27 and also below a swing area between 1.18507 and 1.18568 (see green numbered circles). Today, the price stayed below that swing area (see green numbered circle 10) and ultimately cracked below its 200 hour moving average (green line in the chart above) currently at 1.18362. That moving average is now resistance. Stay below keeps the short term tilt to the downside (The close yesterday was at 1.18415 and staying below it will keep the 3 day losing streak in play).

The low today did reach just below the 38.2% retracement of the move up from the August 20 low. That level comes in at 1.18148. The low price today reach 1.18113 just below that retracement level and did find buyers. The price will have to move back below that 38.2% retracement level and stay below if the sellers are to take more control. The 1.1800 level would be a lower downside target along with the 50% of the move up at 1.17859.

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