The EURUSD is ending near session lows

Technical Analysis

Author: Greg Michalowski | eurusd

Breaks 4 day up streak

The EURUSD is ending the session near the lows.  The selling saw the pair move below an upward sloping trend line in the Asian session. The pair did spike higher in the early European session, only to run into resistance against the underside of the broken trend line.  Sellers reentered and pushed the price lower.

Breaks 4 day up streak
The low for the day (in the early hours of North American trading fell to a low of 1.18107. That took the price below a narrow swing area around 1.1815 level. However the 30.2% retracement of the move up from last week's low at 1.18067 could not be reached. Also in play on the downside as we head into the new trading day is its rising 100 hour moving average at 1.18033. If sellers can push below the aforementioned levels starting at 1.1815, and progressing through the 38.2% retracement at 1.18067 and the 100 hour moving average at 1.18033, the sellers would gain more downside confidence.

Targets would include the 50% retracement 1.1784 followed by the 200 hour moving average at 1.17749.

Holding support would first have traders looking above the 1.18304. That was the old swing high from October 9.  Above that, and traders will be looking to get back above the swing area between 1.1836 to 1.1840.  A move above would be more supportive technically.

Looking back at the last and first debate back on September 29, the EURUSD moved higher initially from 1.1742 close on 5 PM on September 29. The high reached 1.17544 before rotating back to the downside as the debate progressed and traders soured on the results (flight out of risk).  The low reached 1.1683 before snapping back higher.   

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