Moves toward a cluster of swing levels on the downside
On Friday, the EURUSD fell below its 200 hour moving average and stay below that level. Recall from earlier in the week on Monday and Tuesday there were breaks below the moving average but those two breaks failed. Friday was different, and the price close below the moving average level (closing level was 1.1785).
In trading today the Asian session vs. all the price move up to retest that 200 hour moving average. At the same time it was testing a swing area defined by previous highs and lows going back to July 29 (see red numbered circles). The price stay below that moving average and swing area. The Asian buyers turned to sellers and the price has continued lower in the European session.
The low price today has stalled near a another swing area. In fact there are 4 separate swing areas that are clustered between 1.17398 down to 1.16951. The 1.17398 is the closest of course and the low price today stalled just ahead of that at 1.17399. The price has bounced off that level and currently trades around 1.1764.
The close from Friday came in at 1.1785. If the price were to extend back above the closing level in turn positive on the day, that would likely tip the intraday bias a little more to the upside with the 200 hour moving average at 1.18044 the next obvious key target.
Should the price reversed back lower, getting below the swing levels at 1.17398, 1.17298, 1.1719 and 1.16951 would be the steps lower.
